With the coronavirus spreading faster and set to have bigger economic effects than initially assumed, many people are asking how and when central banks will respond. The People’s Bank of China (PBOC) and the central banks of Sri Lanka, Malaysia, the Philippines and Thailand have already cut interest rates, citing the effects of the virus. And even in advanced economies, financial markets have shifted from an assumption of no policy change to pricing in at least some chance of rate cuts since fears about the virus escalated in mid-January.
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