The global financial tightness indicator (diffusion index of central bank rate hikes) has turned down after suggesting loosening conditions for the past 1.5-2 years, signaling that central banks have stopped cutting rates and some have begun hiking, creating more restrictive conditions when the market most needs liquidity support.
factualpending
Speaker
Simon WhiteEvidence Quote
“the chart on the right is the global financial tightness indicator which is essentially diffusion index of central bank rate hikes Again, that had been indicating more loosening conditions for most of the last year and a half, two years. And that too has started to turn down”
Created: 8/11/2026, 7:06:30 AM
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