April Global Macro Monthly - Central banks gauge lagged effects
- 26 April 2023 (7 min read)
Key points
- Market sentiment towards banks improved over the last month as deposit flight and emergency liquidity provision in the US stabilised. We await key central bank surveys to gauge the impact on credit conditions.
- Central banks return to face the previous dilemma: continue to tighten policy despite signs of economic resilience and inflation persistence or pause to see the lagged effect of previous actions.
- A spectrum of central banks emerges. The Bank of Canada announced a “conditional” pause, while several EM central banks delivered less explicit breaks.
- The Federal Reserve and Bank of England look set to tighten further, with European Central Bank hikes expected into Q3. The Bank of Japan also looks set to gradually undo easy policy.
- Higher rates also apply pressure to sovereign issuers. The US debt ceiling is likely to impact over the summer. But other sovereigns may soon face tougher conditions.
Related documents
Our experts and investment teams outline their key convictions.
Visit the investment instituteDisclaimer
The information on this website is intended for investors domiciled in Switzerland.
AXA Investment Managers Switzerland Ltd (AXA IM) is not liable for unauthorised use of the website.
This website is for advertising and informational purpose only. The published information and expression of opinions are provided for personal use only. The information, data, figures, opinions, statements, analyses, forecasts, simulations, concepts and other data provided by AXA IM in this document are based on our knowledge and experience at the time of preparation and are subject to change without notice.
AXA IM excludes any warranty (explicit or implicit) for the accuracy, completeness and up-to-dateness of the published information and expressions of opinion. In particular, AXA IM is not obliged to remove information that is no longer up to date or to expressly mark it a such. To the extent that the data contained in this document originates from third parties, AXA IM is not responsible for the accuracy, completeness, up-to-dateness and appropriateness of such data, even if only such data is used that is deemed to be reliable.
The information on the website of AXA IM does not constitute a decision aid for economic, legal, tax or other advisory questions, nor may investment or other decisions be made solely on the basis of this information. Before any investment decision is made, detailed advice should be obtained that is geared to the client's situation.
Past performance or returns are neither a guarantee nor an indicator of the future performance or investment returns. The value and return on an investment is not guaranteed. It can rise and fall and investors may even incur a total loss.
AXA Investment Managers Switzerland Ltd.