Global liquidity conditions are currently assessed as remaining accommodative, providing ongoing support for economic activity worldwide. Central banks continue to actively manage liquidity to ensure financial stability and promote sustainable growth.

Factors Contributing to Accommodative Liquidity

• Low Interest Rates: Many central banks have maintained low interest rate policies to stimulate borrowing and investment.
• Quantitative Easing: Some central banks continue to implement quantitative easing programs, injecting liquidity into financial markets through asset purchases.
• Reserve Requirements: Adjustments to reserve requirements have also contributed to managing liquidity levels.

Impact on Financial Markets

The accommodative liquidity conditions have had a significant impact on financial markets, including:

• Increased asset prices
• Lower borrowing costs
• Enhanced credit availability

Outlook

The current assessment is that these accommodative conditions are likely to persist in the near term, although central banks are closely monitoring economic developments and stand ready to adjust their policies as needed. The ongoing management of global liquidity remains a key focus for policymakers.