The Czech National Bank dished out another surprise today, raising its main policy interest rate by 100 basis points to 3.75%, the highest since February 2008, and the fifth rate hike this year. A hefty rate hike had been expected, but not this hefty: None of 11 analysts polled by Reuters predicted a 100-point hike.

At its prior meeting on November 4, the CNB had jacked up its policy rate by 125 basis points, the biggest shock-and-awe rate hike in 24 years. Since June, when it began its rate-hike tango, the CNB jacked up its policy rate by 350 basis points, from 0.25% to 3.75%.

This sense of urgency – sorely lacking from the Fed – was motivated by red-hot inflation which hit 6.0% for November, the highest since 2008, amid supply chain bottlenecks, labor shortages, and spiking energy prices.

Ironically, the Fed, which is confronted with an even higher inflation rate – 6.8% in November – hasn’t yet raised the target range for its policy rate, which is still stuck near 0%.

The Central Bank of Russia, on December 17, raised its policy rate by another 100 basis points to 8.5%, its seventh rate hike this year, totaling 425 basis points, from 4.25% to 8.5%, pressured by surging inflation, particularly food price inflation. Overall inflation in Russia hit 8.4%, food inflation hit 10.8%.

This makes the Central Bank of Russia the only central bank whose rate hikes have actually caught up with inflation. Interest rates that are below the rate of inflation are still stimulative and inflationary; Russia has reached some level of neutral.

Since July, the Bank of Russia has been using the term “persistent” in its statements to describe this inflation, while the Fed’s Powell was still clinging ludicrously to “transitory” and “temporary.”

The Bank of the Republic (Colombia), also on December 17, hiked its policy rate by 50 basis points to 3.0%, the third rate hike in a row, totaling 125 basis points since liftoff at 1.75% in September. Inflation hit 5.3% in November.

The Bank of England, on December 16, raised its policy rate by 15 basis points for liftoff, to 0.25%, dishing out a surprise to markets, after having walked back expectations of a rate hike at this meeting. Inflation in the UK surged to 5.1% in November, the worst in 10 years.

The BoE could start Quantitative Tightening as soon as February next year. In a strategy paper last summer, the BoE said that it would stop reinvesting the maturing bonds on its balance sheet, and would therefore allow its balance sheet to shrink, once its policy rate reaches 0.5%. A 25-basis-point rate hike to 0.5% could happen at its next meeting in February, which would open the door to QT.

Norges Bank, the central bank of Norway, also on December 16, hiked its policy rate by 25 basis points to 0.5%, its second rate hike, after its September liftoff from 0%. Inflation in Norway jumped massively from 3.5% in October to 5.1% in November, the worst since 2008.

The ECB, also on December 16, announced a sharp reduction of QE, from an average of €92 billion a month currently, to about €40 billion by March, and to €30 billion in Q3, and to €20 billion in Q4.

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