Central Banks Rush to Mitigate Pandemic Fallout
It had simply been a matter of time, but the World Health Organization (WHO) just declared the Covid-19 outbreak a pandemic after fatalities in Italy jumped 31% overnight. Central Banks are doing their best to mitigate the virus impact, with Britain announcing a $39 billion-dollar stimulus package this morning while the Bank of England slashed its key overnight rate from 0.75% to 0.25%. The European Central Bank indicated it could move as soon as this week—although the ECB’s bank rate is currently -0.50% and its quantitative easing campaign has been ongoing. It’ll be interesting to see how creative they can get in Europe.