Global Rate-Cut Cycle Ends: 26 Central Banks Raised, 26 Cut Rates in May, First Balance Since Early 2021

According to BlockBeats, on June 21, the 52 central banks tracked saw an equal 26 institutions raising and cutting rates in May for the first time since early 2021, marking a significant shift in global monetary policy. Previously, rate-cutting central banks had outnumbered rate-hiking ones for nearly two years. The last such balance occurred in early 2021, followed by a three-year tightening cycle that peaked in mid-2022, when hiking central banks exceeded cutting ones by 28.

The European Central Bank raised rates 25 basis points to 2.25% last week, its first increase since September 2023, while Japan's central bank hiked 25 basis points to 1.0% this Tuesday, the highest level since 1995. A new global tightening cycle appears to be taking shape.