Weekly Liquidity Update: Global liquidity conditions weaken

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Weekly Liquidity Update: Global liquidity conditions weaken

 

  • Latest weekly measures derived from Central Bank balance sheet data show global liquidity conditions weakening (-5.2% 3m ann.)

 

  • Shadow monetary base and collateral values (rising bond yields) have both seen a sharp slowdown

 

  • Fed base effect and ECB loan repayments are the main drivers

 

  • We believe this is a temporary setback and expect liquidity conditions to pick up again during 2H 2023 and not to peak until early 2026

 

 

 

See our latest published research, Weekly Global Liquidity Update 7th July 2023

 

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