Global Liquidity Watch: Weekly Update

Global Liquidity Expanded in Q1 2025, But It Remains Below Last September's All-Time High

Global liquidity expanded in Q1, but it remains below the all-time high recorded in September 2024. Rising collateral values have supported the upturn. Central Banks have lagged behind but March has seen them catching up with positive net liquidity injections. We have the Fed and PBoC to thank for these. We remain cautious on prospects for Q2. The Fed’s liquidity boost may unravel when this months’ tax receipts flow in, draining liquidity from markets. And worryingly, the PBoC also seems to be back-tracking…