Central banks across the globe drew the interest weapon 207 times while institutions and organizations pulled out all the stops to support economies in 2020 when the world was put in the "Great Lockdown".
The crisis caused by the novel coronavirus, when the most basic units of the economy from individuals to companies were shaken, borders were closed and a new economic era was commenced, is called the "Great Lockdown" after the "Great Depression" in the 1930s and the "Great Recession" in 2008.
The uncertainty due to such an unprecedented pandemic has also increased the need for liquidity. In response to this need, central banks worldwide tried to support financial markets and the real economy by taking steps in coordination with public authorities.
While the historical low interest policies and the unconventional expansionary monetary policies that central banks experienced during the 2008 financial crisis were re-engaged, the US Federal Reserve took the lead in the actions in 2020.
With the first COVID-19 case detected in the US, Fed cut its benchmark interest rate by half a percentage point at the beginning of March, the largest cut since the 2008 financial crisis. Soon after, it lowered the benchmark rate to between 0 and 0.25%.
While many central banks followed the path opened by the Fed, a global low interest period started again.