Global Liquidity Watch: Weekly Update

Global Liquidity Growth Ticks Higher

Global liquidity growth is ticking higher on a weekly basis but still remains subpar largely because of China's tighter policy. Hopefully this is an early sign of a turnaround from the weakness recorded in the first half of the year. We had expected the setback. A combination of heavy tax payments which drained liquidity from US money markets in April, ongoing QT by the ECB and Bank of England, and attempts by the Asian Central Banks to shore up their currencies snuffed out the late-2023 upturn.