Pledged Liquidity Continues to Flow

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Pledged Liquidity Continues to Flow

 

Latest weekly balance sheet data from major Central Banks show aggregate liquidity growth stabilising around 30% ( 3m ann.). The G4 equivalent is similarly stable but higher due to the exclusion of China (37%).

The US Fed and ECB remain at the forefront, with their monetary bases expanding, respectively, at 65% and 54%, on a 3-month annualised basis. Bank of Japan liquidity growth is lagging but clearly gaining momentum, hitting 30% in early May – ten times the rate two months ago.

 

 

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