Data compiled by Woofun AI shows that among 52 central banks tracked, May witnessed an equal division of monetary policy actions, with 26 institutions raising interest rates and 26 cutting them. This parity marks the first occurrence since early 2021, breaking a prolonged period where rate cuts dominated. The previous balanced state preceded a three-year tightening cycle that peaked in mid-2022, when 28 more central banks hiked rates than cut them.

Concurrently, major central banks have reinforced this tightening narrative. The European Central Bank implemented a 25 basis point increase to 2.25%, its first hike since September 2023.

Meanwhile, the Bank of Japan raised rates by 25 basis points to 1.0%, reaching the highest level since 1995. These coordinated moves suggest a new global tightening cycle is underway.