Economists predict pain and uncertainty for global economy.

Economists predict a prolonged period of higher interest rates will expose further frailties in the banking sector, potentially compromising the capacity of central banks to rein in inflation. Central banks around the world have been aggressively raising interest rates for over a year in a bid to curb sky-high inflation, but economists warned in recent days that price pressures look likely to remain higher for longer. First Republic Bank became the latest casualty over the weekend, the third among mid-sized U.S. banks after the sudden collapse of Silicon Valley Bank and Signature Bank in early March. Several leading economists told a panel at the World Economic Forum Growth Summit in Geneva on Tuesday that higher inflation and greater financial instability are here to stay.