Impact of Interest Rate Changes on the Economy

Alicia, a portfolio manager, is analyzing macroeconomic indicators to develop a strategic investment outlook for her high-net-worth clients. She is particularly focused on understanding the implications of changing interest rates on the economy. As she reviews recent reports, she notes that central banks in various countries have begun to signal potential changes in their monetary policy stance, citing concerns over inflation rates that have risen above target levels.

Given this context, which of the following scenarios would likely have the greatest impact on the overall economy from an interest rate perspective?