Central Bank Balance Sheets Grow At Fastest Pace In 5 Years
The balance sheets of the ten largest central banks have grown a collective 10.4% since the end of last year to $21.4 trillion. This is the fastest pace of central bank balance sheet growth since the European debt crisis in 2011. The pickup in balance sheet growth can be seen in the chart below.
The majority of this growth has been due to the Bank of Japan and the European Central Bank which together have expanded their asset purchases by $2.1 trillion this year. As has been well covered the Federal Reserve has been talking up interest rate hikes and its balance sheet has actually shrunk this year.
Looking at all central banks’ combined assets just four central banks control roughly 75% of these assets: The Fed, Bank of Japan, the European Central Bank and the People’s Bank of China, see below.
You can read the full Bloomberg article here.