MUMBAI: Global investment firm KKR said central banks globally will start tightening policy this year, expressing caution on long-term government bonds, over-leveraged legacy positions for 2021, exposure to low-income consumers and assets that depend on a return to the old order of low inflation, low interest rates and ample liquidity.In its mid-year outlook titled ‘The Divergence Dilemma’, KKR warned that the global easing cycle is fading and central banks may remain restrained for longer, as inflation proves more resilient and growth is more resilient than expected.“The easing cycle is fading, and the debate ahead may be more about how long policy will remain restrictive,” said Henry H. Macfie, head of global macro and asset allocation at KKR. “Headwinds to inflation are also likely to remain slightly higher for longer, and central banks may be more restrictive than originally thought,” he added.The report indicates a clear shift in global monetary policy this year. KKR has identified several areas of caution for investors. “In our view, long-term Treasuries have become a less reliable safe haven since the emergence of Covid,” the report said.