Chart Of The Week: Global Policy Pivot
Callum Thomas | Apr 07, 2022 12:30AM ET
Monetary Policy from Tailwind to Headwind: Last year and risk assets.
Indeed, the chart below tracks the net-number of central banks in rate cutting vs rate hiking mode. It maps out the clear policy pivot that occurred last year, and which accelerated this year: towards interest rate hikes and stimulus removal.
If we take this chart literally, the global manufacturing PMI looks set to drop below 50 by the end of the year. Not sure how many 2022 outlook pieces had that on their list!
Key point: The global monetary policy pivot presents clear headwinds to growth.
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