The ten-fold increase in confirmed coronavirus cases and slump in equity prices over the past week has increased the risk of a recession. We would not be surprised if the ECB issues an official statement designed to shore up confidence very soon, and the chance of a token rate cut on, or even before, 12th March has risen. Meanwhile, the key things to watch for next week are the daily virus count and financial market turbulence: the scheduled data releases will tell us little new about the impact of the virus.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services