Prospects For Global Liquidity in 2022

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Prospects For Global Liquidity in 2022

 

Global Liquidity is slated, next year, to see its smallest annual increase since 2018, pulled back by the tapering of QE and increases in Central Bank policy rates. This is likely to prove a major headwind for risk asset markets. It also poses bigger risks to funding conditions that could easily tip markets into a more serious sell-off. Three major uncertainties influence our projections: the likely continuing Chinese credit squeeze; the unanticipated Eurozone inflation response and the legacy effect of regulatory constraints on US liquidity.

 

 

 

See our latest published research, Global View - Prospects For Global Liquidity in 2022 - October 2021

 

 

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