Investing.com -- Citi said in its Global Central Banks Monitor report that monetary policy has moved from widespread easing last year to a tightening bias this year. The bank now expects 12 of 27 major central banks to raise rates, 7 to remain unchanged, and 8 to cut rates.

At the start of the year, Citi projected 17 central banks would cut rates, 9 would hold steady, and only one would raise rates, specifically the Bank of Japan.

Central banks have been reluctant to adopt their post-pandemic approach of "looking through" a developing supply shock, according to the report. The market's reaction following the Federal Reserve's recent meeting shows the importance of central banks framing their policies and communication to achieve their inflation targets, Citi stated.