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Central Banks Around The World Coordinate As Coronavirus Paralyzes Economies

Tanzeel Akhtar

The market was reacting Monday to the U.S. Federal Reserve's emergency interest rate cut over the weekend triggered by the spread of the coronavirus. A number of other central banks are also scheduled to make policy decisions this week.

The U.S. central bank cut rates to a range of zero to 0.25% at an emergency meeting and said it would purchase another $700 billion in Treasury bonds and mortgage-backed securities.

Global monetary policy easing is generally expected to delay the downside risks from the coronavirus spread.

Upcoming Central Bank Meetings 

On Friday, the central bank of China slashed the cash that banks must hold as reserves for the second time this year, releasing 550 billion yuan ($78.6 billion) to help its coronavirus-hit economy, according to Reuters.

Taiwan, Brazil, Indonesia, Philippines, Turkey, and South Africa are all scheduled to make policy decisions this week.

  • March 17, Central Bank of Morocco.
  • March 18, Iceland: Central Bank of Iceland.
  • March 18, Brazil: Banco Central do Brasil.
  • March 19, Norway: Norges Bank 
  • March 19, Taiwan: Central Bank of the Republic of China (Taiwan).
  • March 19, Philippines: Central Bank of Philippines 
  • March 19, Indonesia: Bank Indonesia 
  • March 19, Azerbaijan: Central Bank of Azerbaijan 
  • March 19, Turkey: Central Bank of the Republic of Turkey 
  • March 19, South Africa: South African Reserve Bank 
  • March 20, Russia: Central Bank of Russia 

The Bank of Canada, Bank of England, Bank of Japan, European Central Bank, Federal Reserve and Swiss National Bank have already announced coordinated action to enhance the provision of liquidity via standing U.S. dollar liquidity swap line arrangements.

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