The Weekly Brief (28 March 2016) - J.P. Morgan Asset Management

The Weekly Brief (28 March 2016)

Contributor Global Markets Insights Strategy Team

March has been a busy month for central bankers. As this week’s chart shows, nine central banks have cut interest rates so far this month – the highest monthly amount in a year – as central banks look to address concerns about the pace of economic growth.

The latest changes mean that central banks have cut rates over 650 times since the collapse of Lehman Brothers in September 2008. This is, on average, a rate cut once every three trading days. Global central banks have also injected nearly USD 24 trillion between them into the global economy since the financial crisis of 2008. But despite huge amounts of monetary policy stimulus, the global economy has eked out only mediocre growth of 3.2% over the last seven years, compared to an average of 4.2% in the decade before the crisis – a rather small bang for a significant amount of buck.

Number of central banks cutting interest rates

Source: Bloomberg, J.P. Morgan Asset Management; data as of 25 March 2016.

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The Weekly Brief (28 March 2016)