... is about to go negative some time in the third quarter of 2018. However, when looked at from a different, more short-term perspective, the central bank party is already over.
As BofA's Barnaby Martin writes, "while yesterday was all about the pending finale for European (net) asset buying, the bigger story, in fact, has been that global QE has rapidly declined over the last few months. Chart 1 shows global central bank balance sheet growth, on a year-over-year basis, inclusive of China FX reserves." Note that since Martin has traditionally converted all amounts to USD, the recent surge in the greenback has only accelerated the liquidity decline.