Monetary Policy Real World Examples

IB Economics - Macroeconomics - Monetary Policy - Real World Examples

Bank of England inflation target

2% ± 1%

Reduction in interest rates by the Bank of England during the 2008 Financial Crisis

From 5.75% (July 2007) to 0.5% (March 2009)

Reduction in interest rates by the Bank of England during the 2020 Coronavirus Pandemic

From 0.75% to 0.1% in March 2020

Increase in interest rates by Turkey’s central bank

From 15% (November 2020) to 19% (March 2021)

Quantitative easing by the Bank of England

£175 billion following the 2008 financial Crisis

Quantitative easing by the Bank of England (again)

£450 billlion following the 2020 Covid-19 Pandemic

Country experiencing low stable inflation

China

Country experiencing higher inflation

Argentina

Country experiencing deflation

South Sudan, Greece during Eurozone debt crisis

Country experiencing disinflation

Italy