Volcker Shock (1980-1982): The Federal Reserve under Chairman Volcker raised the federal funds rate from around 11% in 1979 to a peak of 20% in 1981. The central bank also implemented other measures to tighten monetary policy, such as increasing reserve requirements for banks.
1. Chinese central bank monetary tightening (2017-2018): The People’s Bank of China implemented a range of measures to tighten monetary policy, including raising various market interest rates and increasing reserve requirements for banks.
1. Bank of England (BOE) quantitative tightening (QT) (2018-2019): The BOE began QT in 2018, reducing its balance sheet and reversing some of its previous asset purchases. It also signaled that future interest rate hikes were possible, although it did not raise rates before the COVID-19 pandemic hit.
1. European Central Bank (ECB) interest rate hikes (2011-2019): In 2011, the ECB began raising its main policy rate from 1% to a peak of 0.25% in 2014. The central bank also ended its QE program in 2018 and began signaling a normalization of monetary policy, including future interest rate hikes.
1. Reserve Bank of Australia (RBA) interest rate hikes (2002-2008): The RBA raised its main policy rate from 4.25% in 2002 to a peak of 7.25% in 2008, with several rate hikes in between.
Flag icons created by Freepik at https://www.flaticon.com/free-icons/