Equal Number of Central Banks Raised and Cut Rates in May

In May, 26 of 52 central banks worldwide raised interest rates and 26 lowered them, according to data compiled by @KobeissiLetter. The balance marked the first month since early 2021 in which the number of hikes and cuts was equal. For the preceding two years, each month had seen more central banks cut rates than raise them.

The last period of parity occurred after three years of restrictive policy that followed the early-2021 reading. The gap between hikes and cuts reached its widest point in mid-2022, when 28 more central banks raised rates than lowered them. 25 percent.

The move was the ECB’s first rate increase since September 2023. 0 percent. That level is the highest for the Japanese central bank since 1995.

@KobeissiLetter stated that a global tightening cycle appears to be beginning.