Global Rate Hike Cycle Begins: Number of Central Banks Raising Interest Rates in May Matches Those Cutting Rates, First Time Since Early 2021

BlockBeats News, June 21st, global monetary policy is at a turning point. Data shows that among the 52 central banks included in the statistics, in May, 26 central banks raised interest rates and 26 central banks cut interest rates, marking the first time in about two years that the two actions have been in balance. Previously, the number of central banks cutting rates had been more than those raising rates. The last time a balanced state occurred was in early 2021, followed by a three-year tightening policy cycle. This index peaked in mid-2022, with 28 more central banks raising rates than cutting rates at that time.

Last week, the European Central Bank announced a 25 basis point rate hike to 2.25%, the first rate hike since September 2023; this week, the Bank of Japan also raised interest rates by 25 basis points to 1.0%, reaching the highest interest rate level since 1995. A new global tightening cycle appears to be underway.