Global rate-hike cycle accelerates: 45% of central banks have raised rates
About 45% of the world's central banks have raised interest rates over the past three months, the highest share in three years. Central banks have hiked 42 times in the past six months, the most since late 2023.
Summary
The global rate-hike cycle is spreading faster. About 45% of the world's central banks have raised interest rates over the past three months, the highest share in three years. That share has risen by 40 percentage points since March.
From easing to tightening
From 2024 to March 2026, more central banks were cutting rates than raising them. That trend has now clearly reversed.
- Central banks worldwide have raised rates 42 times in the past six months, the most since late 2023.
- That number has quadrupled in seven months and is comparable with the 2019 hiking cycle.
Why it matters
Simultaneous tightening across countries raises funding costs globally and can slow economic growth. Diverging monetary policy between countries is also one of the main drivers of the forex market.
Possible market impact
- Currencies: Currencies of countries hiking faster may strengthen; follow policy rates in our central banks section. EUR/USD daily analysis
- Gold: Higher rates raise the opportunity cost of holding gold and can weigh on it. Gold daily analysis
- Stocks: Tightening usually weighs on equity valuations, especially growth and tech stocks.
Data source: The Daily Shot.
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