Global liquidity remains abundant despite recent interest rate increases by major central banks. This phenomenon is largely attributed to current account surpluses in several countries and sustained strong demand for financial assets worldwide.

The continued high level of liquidity has played a significant role in supporting financial markets, keeping borrowing costs relatively low, and fueling investment activity. However, it also poses potential risks, including asset price inflation and increased vulnerability to financial shocks.

Policymakers face the challenge of managing this excess liquidity to ensure sustainable economic growth and financial stability. This involves careful monitoring of financial markets and appropriate policy responses to mitigate potential risks.