Interest Rates – Central Bank Policy Rate Hikes vs. Cuts Emerging market central banks typically take the lead in initiating monetary tightening and easing cycles. In 2024, their approach has shifted away from aggressive easing. Image: BofA Global Investment Strategy
Central Bank Gold Purchases Gold remains a key focus for central banks, as it serves to fortify the stability and resilience of their reserves, especially amidst economic turbulence or currency fluctuations. Image: Goldman Sachs Global Investment Research
Annual Changes in Central Bank Gold Reserves The significant increase in gold reserves by China, Poland, and Singapore in 2023 reflects a broader trend of central banks expanding their holdings of bullion amid escalating geopolitical and economic risks. Image: BofA Global Research
Central Banks Policy Rates Are global negative interest rates unlikely to be revisited soon, as many policymakers have concluded that they have not worked as intended? Image: Deutsche Bank
Monthly Number of Global Central Bank Rate Cuts In response to slowing inflation and the need to bolster economic growth, central banks around the globe are shifting towards a more accommodative monetary policy. Image: BofA Global Investment Strategy
Tech Stocks – G3 Central Bank Balance Sheet vs. Nasdaq 100 Will the divergence between central bank liquidity and tech stock performance continue through 2024? Image: BofA Global Investment Strategy
Central Banks – Global Monetary Policy Stimulus Leads Global Manufacturing PMI As global monetary policy stimulus tends to lead global manufacturing PMI by 8 months, could this signal the end of the economic slowdown? Image: Topdown Charts
Liquidity Policies and Central Bank Balance Sheets Central banks have barely decreased the amount of QE stock, suggesting a deliberate and measured strategy in scaling back economic support. Image: BofA Global Investment Strategy
Time Series of the S&P 500, Highlighting Periods of Stress and Response from Central Banks Post the 2013 Taper Tantrum, the interventions by central banks during market dips provided buying opportunities for investors to generate excess returns, rather than reasons to panic or sell off their investments. Image: BofA Global Research
Number of Global Central Bank Hikes and Cuts The current trend of global central banks cutting interest rates at the fastest pace since August 2020 could significantly impact financial markets, borrowing costs, and overall economic activity. Image: Deutsche Bank