Central Banks: Step up support as crisis deepens – RBC Economics

As the economic and financial market toll of the coronavirus pandemic escalates, central banks have shifted focus from stimulating spending and investment to simply “bridging the gap” and getting households and businesses to the other side of this crisis, Josh Nye from Royal bank of Canada informs. 

Key quotes

“The Fed cut its policy rate by 100 basis points and is restarting QE alongside other measures to support lending.”

“The Bank of Canada cut its policy rate by 50 basis points and announced a banker’s acceptance purchase facility.”

“The Bank of Japan will increase its asset purchases, including doubling ETF purchases.”

“The Reserve Bank of New Zealand cut its policy rate by 75 basis points and said asset purchases could be a next step.”

“The Reserve Bank of Australia said it stands ready to purchase assets.”