ECB raises interest rates: What you need to know about the global economy this week

The European Central Bank has raised three of its key interest rates by 50 basis points. It's the first such move in more than a decade.

The Asian Development Bank has cut its forecast for GDP growth in developing countries in the region to 4.6% from 5.2%.

Bloomberg reports that Angola and Gabon's sovereign bonds are trading at distressed levels. It puts the number of emerging market economies at risk of default at record levels.

Thailand's industrial sentiment rose in June – for the first time in three months. The increase in the Federation of Thai Industries' index was attributed to an easing of COVID-19 restrictions and improved economic activity.

South African inflation hit a 13-year high in June, reaching 7.4% year on year. This is above analysts' predictions of 7.2%, and up from 6.5% in May.

Sterling stabilized against the US dollar and the euro this week, after British inflation was only slightly above forecast.

A Reuters poll of economists suggests that the US Federal Reserve will opt for another 75-basis-point rise in interest rates next week. Median predictions from the same poll also showed a 40% probability of a US recession over the coming year.

Japan recorded a trade deficit for an 11th month in June, with higher energy prices and a weaker yen increasing the country's import bill.

It comes as the Bank of Japan kept its interest rates unchanged, with its short-term rate remaining at -0.1% and a 0.25% cap on 10-year yields.

Rising petrol and food prices pushed British inflation to its highest rate in more than 40 years in June.

Annual consumer price inflation rose to 9.4% last month, the highest since February 1982 and up from May's 9.1%, according to Office for National Statistics figures.

The latest increase means Britain has the highest inflation rate of any G7 economy, although many smaller European Union countries are seeing even faster growth in prices.

The Indian economy is expected to remain on course to become the world's fastest-growing, the Reserve Bank of India (RBI) said on Saturday.

"Knock-on effects of geopolitical spillovers are visible in several sectors, tapering the pace of recovery," the central bank said.

"In spite of this overwhelming shock, there are sparks in the wind that ignite the innate strength of the economy and set it on course to becoming the fastest-growing economy in the world, though besieged it might be by fears of recession."

The bank didn't give a time frame for India's economic trajectory, but it did say it expects inflation to cool if the easing of commodity prices and supply chain challenges continues.

The European Central Bank has raised three of its key interest rates by 50 basis points. It's the bank's first such more in more than a decade.

The interest rate on the main refinancing operations and the rates on the marginal lending facility and deposit facility will rise to 0.5%, 0.75% and 0% respectively - effective from 27 July.

Three new IMF working papers look at the potential impact of a shutoff of Russian gas exports to Europe.

A new economy survey asks 600 economists what the optimal inflation target should be.

What impact does mechanization have on wages and employment? Here's some evidence from 19th-century France.