Perceptions of risk and policy outlook drive markets
Financial markets extended previous gains during the review period. As inflation readings gradually fell and the pace of policy tightening slowed early in the period, financial conditions eased and risky asset valuations generally rose on the back of perceptions of declining risks. Expectations of significant rate cuts in the near term appeared to firm up, despite cautious central bank communication about the policy outlook. The US dollar depreciated further, lending additional support to assets in emerging market economies (EMEs). Towards the end of the period, however, market developments proved sensitive to news that challenged investors' sanguine attitude.
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BIS Quarterly Review, March 2023 - media briefing
Claudio Borio and Hyun Song Shin brief the media on the key takeaways of the BIS March 2023 Quarterly Review.
Media briefing on the BIS Quarterly Review, March 2023
Claudio Borio and Hyun Song Shin summarize the March 2023 Quarterly Review and answer journalists' questions about market developments and the economic outlook.
The views expressed here do not necessarily reflect the views of the BIS member central banks.