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Our proprietary Financial Conditions Index shows that financial conditions improved to their highest score since May 2020.
Significant improvement in money market and stock market drove the overall improvement in financial conditions.
Increase in interbank liquidity, subsequent fall in money market rates below reverse repo and robust stock market performance on the back of positive Covid-19 vaccine development news drove the improvement in overall financial conditions.
Our calculation shows that financial conditions score improved to 10.94 in Nov-20 from 9.61 in October 2020.
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