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The Kobeissi Letter: World central banks are increasingly moving toward tightening: Global central banks have...

Source-attributed Telegram post from The Kobeissi Letter: World central banks are increasingly moving toward tightening: Global central banks have cut rates 31 times year-to-date, outpacing 12 hikes conducted over...

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The Kobeissi Letter

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World central banks are increasingly moving toward tightening:

Global central banks have cut rates 31 times year-to-date, outpacing 12 hikes conducted over the same period.

Over the last 3 months, there were just ~3 more rate cuts than hikes globally, the smallest gap since 2023.

Developed markets have now implemented 3 more rate hikes than cuts over this period.

At the same time, emerging markets have still seen 6 more rate cuts than hikes.

To put this into perspective, world central banks hiked rates ~90 times more than they cut in a single 3-month period during the peak of the 2022 inflation crisis.

Resurgent inflation points to more rate hikes ahead.
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