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
Global Central Bank Balance Sheets The ongoing trend of central banks purchasing global debt since 2008, will depend on dynamic economic conditions, inflationary forces, and the specific monetary policy goals of each individual central bank. Image: Real Investment Advice
G10 Central Bank Balance Sheets The shrinking of G10 central bank balance sheets is a significant factor that can impact liquidity and potentially act as a headwind for equities. Image: Deutsche Bank
Global Central Bank Rate Cuts vs. Hikes Since the beginning of the year, there have been more global rate hikes than global rate cuts. Image: BofA Global Credit Research
G5 Central Banks Balance Sheet vs. Nominal GDP Growth Shrinking global excess liquidity tends to be a headwind for equity markets. Image: J.P. Morgan
G4 Central Bank Balance Sheet Will central bank’s quantitative tightening increase pressure on financial markets? Image: BofA Global Investment Strategy
Major Central Bank Policy Rates The peak in interest rates among major central banks is yet to come. Image: Wells Fargo Economics
Central Bank – BOJ Outright Purchases of JGBs Will the Bank of Japan (BOJ) continue to buy Japanese government bonds as part of its yield curve control policy? Image: BofA Global Investment Strategy
Equities – FANG+ Index vs. Major 5 Central Banks Index The contraction of central bank balance sheets tends to push tech giants lower. Image: Deutsche Bank