Central Bank Liquidity Growth Continues to Slow

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Central Bank Liquidity Growth Continues to Slow

 

Latest weekly balance sheet data from major Central Banks show aggregate liquidity growth slowing to 21%, compared to the recent early-April peak of 35% ( 3m ann. rate). The G4 equivalent (ex. China) stands at 23% versus its 41% peak. The US Fed is clearly driving the slowdown: latest 28% vs. 78% peak. March and April saw some acceleration in ECB, Bank of Japan and Bank of England liquidity expansion but this has stalled through May/June. The People’s Bank of China remains the tightest of the majors in terms of net liquidity injections.

 

 

 

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