After a string of strong employment and inflation reports, central bank policy makers including the Federal Reserve, the ECB, the BoE and the BoJ are examining the potential for a start to tapering bond purchases as soon as November 2021.

With any large changes by central banks such as tapering it is inevitable that there could be a degree of volatility. We delve into what tapering is, what led to the 2013 taper tantrum and what could be the impact of tapering this time around.