How do you read a central bank balance sheet?

FTC Community TeamStaff91 views

Balance sheets show what a central bank holds and owes — reserves, bonds, liquidity operations. The numbers are public, slow-moving and rarely read by retail traders.

How do you read a central bank balance sheet? — central bank rate path diagram
A central bank's policy rate path across recent meetings

What's your method?

  • the items you look at first
  • how changes flow through to currencies
  • the balance-sheet story you're following
How do you read a central bank balance sheet? — bid-ask spread diagram
The bid-ask spread on a currency pair

Background: QE and QT.

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