Global Liquidity Watch: Weekly Update

Global Liquidity levels tick higher, led by the US

The chart below shows our weekly measure of Global Liquidity derived from Central Bank balance sheet data. Latest data show that global liquidity is shrinking at a slower pace (-2.4% 3m ann.). Importantly, in nominal terms, liquidity levels have ticked higher. Latest data record US$165.6tr, up US$252bn on the week. Still, this is below the year’s average of US$166.5tr and the high of US$168.7tr recorded in April. More is needed but the data reinforce our view that liquidity bottomed in October 2022. Back then, it hit US$158.8tr. We expect liquidity conditions to continue to improve before peaking in 2026.