Politics now driving markets more than central banks – BIS review
“Precipitous decline” in correlations implies markets no longer in thrall to central bank policy
High political uncertainty took over from the actions of central bankers in being the primary driver of markets in the last three months, according to the Bank for International Settlements’ latest quarterly review, published today (March 6).
Speaking to journalists on March 3, the head of the BIS’s monetary and economic department Claudio Borio said there had been a “precipitous decline” in correlations across asset classes. Central banks “stepped back from the limelight” while politics
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