Global Rate Hike Cycle Begins: Number of Rate Hikes Matches Rate Cuts in May, 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, the number of institutions that raised interest rates was the same as those that cut interest rates, with 26 each, marking the first time in about two years that a balance has been struck. Previously, central banks that cut interest rates had outnumbered those that raised rates. The last time a balanced state occurred was in early 2021, followed by a three-year tightening policy cycle. This indicator peaked in mid-2022, with 28 more central banks raising rates than cutting them.

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 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.