As the global economy continues to recover from the effects of the COVID-19 pandemic, central banks around the world are contemplating their next moves in terms of monetary policy. One key question that has been on the minds of many investors and policymakers is the possibility of a 100 basis-point hike in interest rates.

A basis point is equivalent to one-hundredth of a percentage point, so a 100 basis-point hike would mean an increase of 1 percentage point in interest rates. This would have significant implications for the economy, financial markets, and consumers.

The likelihood of a 100 basis-point hike depends on a variety of factors, including the state of the economy, inflationary pressures, and the actions of other central banks. Currently, most major central banks, including the Federal Reserve in the United States and the European Central Bank, have kept interest rates at historically low levels in order to support economic growth and stimulate inflation.

However, as the global economy continues to rebound and inflationary pressures build, central banks may be forced to raise interest rates to prevent overheating and maintain price stability. A 100 basis-point hike would be a significant move and could have far-reaching consequences for financial markets.

Some analysts believe that a 100 basis-point hike is unlikely in the near term, given the fragile nature of the global economy and the risks posed by new variants of the coronavirus. However, others argue that central banks may have to act sooner rather than later in order to prevent inflation from spiraling out of control.

Ultimately, the possibility of a 100 basis-point hike will depend on how the global economy evolves in the coming months. Investors and consumers should closely monitor economic data and central bank statements in order to gauge the likelihood of such a move. While a 100 basis-point hike would undoubtedly have a significant impact, central banks will need to carefully balance the need for tighter monetary policy with the risks to economic growth and stability.

LEARN ABOUT: Investing During Inflation

REVEALED: Best Investment During Inflation

HOW TO INVEST IN GOLD: Gold IRA Investing

HOW TO INVEST IN SILVER: Silver IRA Investing