Financial conditions have been thrust into the spotlight as a major consideration for monetary policy among major central banks. But what exactly are they? This explainer looks at what determines financial conditions, the impact they have on financial markets and the real economy, along with indicators you can watch to monitor how they’re evolving. Even a basic understanding may help improve investment strategy and asset selection. Why they matter for the real economy? Financial conditions influence borrowing costs for companies, households and governments. When conditions are loose, they typically have easier to ... (full story)