If market expectations for policy rates pan out, then by the first part of next year the average policy rate will have increased by an amount comparable to the rise seen through the mid-2000s – but while that increase occurred over four years, this increase will have taken just four quarters.
1  Graph 1  International Policy Rates*  % 6 5 4 3 2 1 ppts  Average level  % 6 5 4 3 2 1  Quarterly change  ppts  0  0  -1  -1  -2 1993  1998  2003  2008  2013  2018  -2 2023  *  Central bank policy rates, quarterly data, weighted by June 2021 USD GDP: Fed, ECB, BoJ, BoC, BoE, RBA, PBoC.