World central banks have cut rates over 300 times in the past 2 years, the most this century, and global financial conditions are now the easiest they’ve been since 2021.

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In the two years following the nadir of the 2008 global financial crisis, global central banks implemented a staggering 313 rate cuts. Over the past two years, they’ve nearly matched that pace with 312 cuts – and the most influential central bank, the Federal Reserve, may add another soon. The question now is whether these actions are truly stimulating economic growth or simply inflating asset bubbles.
Flooding the Market with Liquidity
Michael Hartnett, chief investment strategist at Bank of America, points out that markets are awash in liquidity due to these rate reductions. This flood of capital pushes investors into various assets in search of yield, driving up prices and creating what some might consider ‘bubble-like’ conditions in certain sectors.

https://www.markets.com/analysis/global-central-bank-rate-cuts-market-trends-1393-en

Global financial conditions are easing:

Global financial conditions have reached their easiest level since 2021.

The 2020-2021 period was when world governments and central banks stimulated the global economy on the largest scale in history as a response to the pandemic.

Financial conditions have eased over the last 2 years from one of the most restrictive levels since 2001.

The move has been similar to the one seen following the 2008 Financial Crisis.

This comes as over 90% of global central banks have either cut or kept rates unchanged over the last 12 months, the highest percentage since 2020-2021.

World monetary policy has rarely ever been this loose.