Global Monetary Policy Barometer

During the pandemic, central banks in both advanced and emerging market economies took unprecedented steps to ease financial conditions and support economic recovery, including cutting interest rates and buying assets.
With inflation in many countries at its highest level in decades and pressures going beyond food and energy prices, politicians have begun to tighten their policies. Central banks in many emerging markets began raising rates aggressively early last year, and their counterparts in advanced economies in the last months of 2021.
The monetary policy cycle is now increasingly synchronized around the world. Importantly, the pace of tightening is accelerating in several countries, particularly in advanced economies, in terms of both frequency and magnitude of rate hikes. Some central banks have begun to reduce the size of their balance sheets, moving further toward normalization of policy.