Central Bank Balance Sheets: What Will They Look Like in 2016-2017?

Reader Gary emailed a link to JP Morgan’s Quarterly Market Guide. Here are a pair of charts from page 19 that caught my eye.

Central Bank Policy Rates

Current Rates

• Bank of England: 0.50%
• Bank of Japan: 0.10%
• Fed: 0.00%-0.25% (currently 0.14%)
• ECB: 0.05%

Central Bank Balance Sheets

Three Questions

1. Other than asset bubbles, what do we have to show for this?
2. Will the ECB follow Japan to “Nirvana”?
3. When do asset sheet balances approaching 100% of GDP matter?

Mike “Mish” Shedlock