Central banks globally roll back balance sheets – quantitative tightening pace heightened

Quick Take

Global central banks are decidedly rolling back on their respective balance sheets, indicating an aggressive stride in quantitative tightening for 2023.

The Bank of England’s (BOE) balance sheet downsized by 3%, while the Federal Reserve reported a 4% reduction. Notably, the People’s Bank of China charts a 5% decline in its balance sheet.