FAST FIVE: Central Banks Are Buying $2.4 Billion In Assets Every Hour As Their Balance Sheets Eclipse $20 Trillion
One number highlighted by BofA's Michael Hartnett in his latest Flow Show report has the answer: in the past 8 weeks, central banks have been buying $2.4 billion per hour of financial assets.
As central banks continue to provide further support and with additional fiscal stimulus expected, this figure will likely move towards $20tn later this year, even if some of the announced measures are implemented in 2021 and beyond.
Across EM, further room for rates easing remains in many countries, although the question of how low is too low is starting to come into view in some countries.
Finally, while all major countries have cut rates over the policy cycle, the non-standard measures that have been introduced vary widely across countries.
The introduction of purchases of local government and corporate debt and other assets has been more varied even among the DM economies, with the Fed seeing the broadest range of new measures, with its array of new credit-oriented facilities.