Increase of interest rates by central banks all over the world may provoke global recession in 2023, World Bank noted.

Central banks have raised rates with a degree of synchronicity unseen in the past five decades to cope with rising prices, it said.

Raising rates makes borrowing more expensive to try to reduce the rate of price increases. But it also makes loans more expensive, which could slow economic growth, the BBC reports.

The World Bank warning came ahead of monetary policy meetings of the U.S. Federal Reserve and the Bank of England, which are expected to raise key interest rates next week.

The World Bank said the world economy is experiencing its sharpest slowdown since the post-crisis recovery in 1970.

The study found that the world's three largest economies -- the U.S., China and the eurozone -- are slowing sharply.

Under these circumstances, even a moderate hit to the global economy next year could trigger a recession, the report said.

The World Bank also called on central banks to coordinate their actions and clearly communicate policy decisions to reduce the degree of tightening needed.

Inflation, the rate at which prices are rising, has reached a 40-year high in the U.S. and Britain in recent months. This has been driven by higher demand as restrictions related to the pandemic have eased, and as the war in Ukraine has driven up energy, fuel and food prices. Central bank policymakers responded by raising interest rates to reduce demand from households and businesses. However, a significant increase in interest rates increases the risk of recession, as it can lead to a slowdown in the economy.