168 cuts

2025 has so far been marked by geopolitical and trade tension, with tariff decisions from the US administration threatening to reverse decades of globalization and disrupt global trade. Nevertheless, financial markets have shown strong resilience, quickly recovering the losses seen around “Liberation Day”, April 2, 2025, when the US unveiled sweeping tariff measures.

A key support behind the recovery is central bank policy. Over the past 12 months, global central banks have enacted 168 rate cuts — a level nearing the peaks seen during the Global Financial Crisis and the Covid period. With central banks injecting liquidity, it’s difficult to imagine a return of hawkish policy in the near term. That supportive backdrop remains a tailwind for equities.