"Things quickly took a turn toward financial stability risks in March, leaving central banks in a tough spot.”
— Sébastien Mc Mahon and Adil Mahroug, iAIM
Highlights:
- Central banks in North America and Europe are dealing with sticky inflation and bank turmoil at once, making their jobs even more difficult
- Quantitative tightening and flows towards money market funds are putting pressure on banks balance sheets, creating risks of liquidity incidents in some asset classes
- While central banks can put temporary mitigation solutions in place to support financial stability, we believe central bankers will likely be forced to adjust their stance
Your current economic review is also in the Document Centre of the Advisor Centre every month!
Search with the keyword "Macro" or bookmark the following link: Monthly Macro and Strategy
Sébastien Mc Mahon, MA, PRM, CFA
Chief Strategist, Senior Economist and Vice-President, Asset Allocation & Portfolio Manager
Adil Mahroug, M. Sc.
Senior Strategist and Director, Asset Allocation
