Global Liquidity Gently Expanding

Our weekly Global Liquidity monitor based on the shadow monetary base confirms that liquidity conditions are improving. The chart below shows the 3-month annualized and year-on-year growth in this weekly Global Liquidity monitor. Latest data show liquidity growing at 4.5% (3m ann.) and 2.5% (12m).  Both measures confirm the low-point as 2H 2022. QT de facto ended in October last year in the wake of the UK gilts crisis. Since then, liquidity conditions have been improving. In nominal terms, we estimate global liquidity to total US$167.6tr. At its low last October, it stood at US$158.2tr.