Investment Institute
Monthly Market Update

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

Full global macro monthly April
Download article (608.27 KB)
Full slide deck of our April Global Monthly Strategy
Download the full deck (1.49 MB)
Investment Institute

Our experts and investment teams outline their key convictions.

Visit the investment institute

Related Articles

Monthly Market Update

May Op-Ed - If you are bored by central banks, Tech remains interesting

Monthly Market Update

May Monthly Investment Strategy - Governments extend influence over outlooks

Monthly Market Update

April Op-Ed - Looking outside the West

    Disclaimer

    This document is for informational purposes only and does not constitute investment research or financial analysis relating to transactions in financial instruments as per MIF Directive (2014/65/EU), nor does it constitute on the part of AXA Investment Managers or its affiliated companies an offer to buy or sell any investments, products or services, and should not be considered as solicitation or investment, legal or tax advice, a recommendation for an investment strategy or a personalized recommendation to buy or sell securities.

    Due to its simplification, this document is partial and opinions, estimates and forecasts herein are subjective and subject to change without notice. There is no guarantee forecasts made will come to pass. Data, figures, declarations, analysis, predictions and other information in this document is provided based on our state of knowledge at the time of creation of this document. Whilst every care is taken, no representation or warranty (including liability towards third parties), express or implied, is made as to the accuracy, reliability or completeness of the information contained herein. Reliance upon information in this material is at the sole discretion of the recipient. This material does not contain sufficient information to support an investment decision.

    Are you a Professional Investor ?

    This website is available in English only and directed at professional, institutional or qualified investors. It is not suitable for retail investors. As such, some of the funds, products and services described on this website are not available for retail investors under the MiFID II (Directive 2014/65/UE). By pressing accept you confirm that you are a professional investor and agree to AXA Investment Managers' Legal Information and Terms of Use.