Central bank largesse risks disappointing markets this year | Reuters


Combined stimulus from the world’s biggest central banks is likely to top $1.2 trillion this year, the highest amount since 2017, but it may well disappoint stock markets, which have surfed to successive record highs on the back of this tide of super-easy money.

Liquidity injections from central banks – via asset purchases or cuts to interest rates and bank reserve ratios – have fueled a near-relentless upwards march in equities and riskier types of bonds for more than a decade.

Any reasons to sell have been more than matched by fresh asset-buying rounds or rate cuts.

Source: Central bank largesse risks disappointing markets this year – Reuters

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