To monetary policymakers, a surprise of COVID was the impact on inflation as lockdowns were lifted. Households unleashed a flood of pent-up spending, while Russia’s invasion of Ukraine caused energy prices to spike. Suddenly central banks found themselves dealing with inflation that rivalled that of the 1970s.

Because curbing inflation called for interest rate rises rather than reductions, there was no need for unconventional monetary policy. The problem was the anguish that high rates caused to mortgage holders and business owners who had become accustomed to cheap money.