Liquidity Insights Overview | J.P. Morgan Asset Management

Liquidity Insights

Discover our vast array of liquidity insights covering global investment news and trends that may impact your cash portfolios

LATEST LIQUIDITY COMMENTARY

A “close call” on the BOE’s laboured path to higher rates

The Bank of England (BoE) defied market expectations for a rate hike as they left the Bank Rate unchanged at 0.1% and maintained total target of asset purchases at GBP 895 billion. The deferred hike means no immediate respite to ultra-low sterling yields, although further interest rate volatility is likely; investors should consider maintaining a disciplined approach to cash investment and segmentation.

RBA Tentative Tapering

The RBA announced its first tentative step towards tapering and eventual policy normalization.

ECB opts for a “steady hand” on policy

At its monthly policy meeting in June, the ECB revised its growth and inflation forecasts upwards, but confirmed its “very accommodative monetary policy stance”.

Bank of England upgrades economic forecasts – but let’s not get carried away!

At the latest Bank of England (BoE) monetary policy meeting, the Monetary Policy Committee (MPC) significantly upgraded its economic growth, inflation and employment forecasts.

Monetary Authority of Singapore – Cautious optimism as recovery continues

At their latest semi-annual policy meeting, the MAS' comments was modestly upbeat and the central bank revised up their headline inflation target - both of which could have implications for SGD cash investments.

European Central Bank: Turning words into actions

The European Central Bank (ECB) Governing council (GC) decided to “significantly increase” monthly Pandemic Emergency Purchase Program (PEPP) purchases over the second quarter of 2021, based on the recent evolution of financing conditions and inflation outlook.

Bank of England put negative rates on the long finger

The Bank of England (BoE) has postponed a decision on negative interest rates for at least six months with the probability of negative rates declining sharply due to the expectation of a strong vaccine-led recovery.

Chinese taper tantrum

The surprise withdrawal of liquidity by the People’s Bank of China in the last week of January triggered a spike in short-term interest rates. Aidan Shevlin, International Head of Liquidity Fund Management, shared his perspectives on China’s monetary policy.

China’s onshore corporate bond market – understanding recent market volatility

China’s bond market has seen an unusual wave of defaults over the past month – triggering a jump in credit spreads and raising investor concerns. Find out the implications to cash investments and why independent credit research remains important.