Wednesday, July 27, 2016

Global Central Banks Are All-In: QE Running At Record $180 Billion Per Month (And Rising)

The monetary policy beatings will continue until morale improves. Eight long years after monetary policy experimentation went extreme, Reuters reports the amount of QE stimulus being pumped into the world financial system has never been higher... and it's about to get bigger.

As Jamie McGeever reports, The European Central Bank and Bank of Japan are buying around $180 billion of assets a month, according to Deutsche Bank, a larger global total than at any point since 2009, even when the Federal Reserve's QE programme was in full flow.

And if market consensus proves accurate, that total is about to rise by billions more -- with the ECB, BOJ and even Bank of England all expected to expand their QE programmes soon to try and bolster fragile growth and lift stubbornly low inflation.

The $180 billion total is roughly split down the middle between the ECB and BOJ, according to Deutsche, and is measured on a rolling 12-month basis. But against GDP, Japan is the biggest 'loser'...

And that is why stock markets around the world have soared since February amid a collapse in everything fundamental...

Charts: Reuters, DB, and Bloomberg