Factbox-Big banks see global economy slowing more in 2023, with likely U.S. recession

The world’s largest investment banks expect global economic growth to slow further in 2023. U.S. Federal Reserve has increased interest rates by 375 basis points this year since rolling out its first hike in March. This has sparked worries about a recession, even as the central bank is expected to temper its pace of hikes. Morgan Stanley sees the Fed delivering its first rate cut by December 2023, taking the benchmark rate to 4.375%. Barclays sees the rate between 4.25% and 4.50% by the end of next year, while Deutsche Bank sees it at 4.625% after a rate cut. Most banks see the euro falling below parity to the dollar before clawing back back-as-ending backing back. . . .