How central banks are responding to the coronavirus threat

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Central banks, including the Federal Reserve, have issued statements aimed at reassuring markets and the broader financial services sector of their preparedness to deal with the impact of the coronavirus epidemic.

The S&P 500 fell more than 9% in the past week as global fears grew over efforts to contain the virus.

Financial services companies, including banks, have seen share prices fall the most in a week since the peak of the financial crisis in early 2009.

Federal Reserve Chairman Jerome Powell said on Friday: The fundamentals of the U.S. economy remain solid. However, the coronavirus poses evolutionary risks for economic activity. The Federal Reserve is closely monitoring developments and their implications for the economic outlook. We will use our tools and act as appropriate to support the economy.

Vice President Mike Pence, who coordinates the response of US governments to the epidemic, echoed Powells' feelings and added that the stock market would rebound.

Earlier in the day (March 2), Haruhiko Kuroda, Governor of the Bank of Japan, promised that the central bank closely monitor future developments and will endeavor to provide sufficient liquidity and ensure the stability of the financial markets through appropriate market operations and the purchase of assets .

The Bank of England has also promised to ensure that all necessary steps are being taken to protect the UK's financial and monetary stability from the effects of the epidemic, according to Reuters, including by working with other UK regulators and international partners.

The People's Bank of China (PBOC) lowered its interest rates on February 21 to boost the economy of the country where the virus first appeared. Many cities in China are blocked to prevent the spread of the virus, which is expected to affect China's economic growth.

PBOC Deputy Governor Chen Yulu said last week that the central bank was ready to continue careful monetary policy measures after President Xi Jinping called for a stimulus.

As of February 29, there have been 15 confirmed cases of COVID-19, the coronavirus disease and seven other suspected cases in the United States, according to the Centers for Disease Control (CDC). More cases were reported on Sunday, according to the Wall Street Journal.

Banking groups such as Deutsche Bank and HSBC have taken steps to help staff work from home, according to the Financial Times and other reports, while several others have restricted or even banned travel to particular countries affected by the epidemic, notably China and Italy.

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Central banks, including the Federal Reserve, have issued statements aimed at reassuring markets and the broader financial services sector of their preparedness to deal with the impact of the coronavirus epidemic.

The S&P 500 fell more than 9% in the past week as global fears grew over efforts to contain the virus.

Financial services companies, including banks, have seen share prices fall the most in a week since the peak of the financial crisis in early 2009.

Federal Reserve Chairman Jerome Powell said on Friday: The fundamentals of the U.S. economy remain solid. However, the coronavirus poses evolutionary risks for economic activity. The Federal Reserve is closely monitoring developments and their implications for the economic outlook. We will use our tools and act as appropriate to support the economy.

Vice President Mike Pence, who coordinates the response of US governments to the epidemic, echoed Powells' feelings and added that the stock market would rebound.

Earlier in the day (March 2), Haruhiko Kuroda, Governor of the Bank of Japan, promised that the central bank closely monitor future developments and will endeavor to provide sufficient liquidity and ensure the stability of the financial markets through appropriate market operations and the purchase of assets .

The Bank of England has also promised to ensure that all necessary steps are being taken to protect the UK's financial and monetary stability from the effects of the epidemic, according to Reuters, including by working with other UK regulators and international partners.

The People's Bank of China (PBOC) lowered its interest rates on February 21 to boost the economy of the country where the virus first appeared. Many cities in China are blocked to prevent the spread of the virus, which is expected to affect China's economic growth.

PBOC Deputy Governor Chen Yulu said last week that the central bank was ready to continue careful monetary policy measures after President Xi Jinping called for a stimulus.

As of February 29, there have been 15 confirmed cases of COVID-19, the coronavirus disease and seven other suspected cases in the United States, according to the Centers for Disease Control (CDC). More cases were reported on Sunday, according to the Wall Street Journal.

Banking groups such as Deutsche Bank and HSBC have taken steps to help staff work from home, according to the Financial Times and other reports, while several others have restricted or even banned travel to particular countries affected by the epidemic, notably China and Italy.

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