Coronavirus may trigger Bank Base Rate cutMake Text Bigger
Markets are starting to price in a Bank of England Base Rate decrease of at least 0.25% as central banks around the world marshal what monetary fire power they can against the potential economic consequences of a global Coronavirus pandemic.
The next Monetary Policy Committee (MPC) meeting is due to take place on Thursday the 26th March.
The FTSE 100 bounced back and Sterling fell as the Bank of England today confirmed it would take “all necessary steps” to uphold the British economy’s stability in the face of the Coronavirus outbreak.
A Bank of England spokesperson added: “The Bank continues to monitor developments and is assessing its potential impacts on the global and UK economies and financial systems.”
“The Bank is working closely with HM Treasury and the FCA as well as our international partners to ensure all necessary steps are taken to protect financial and monetary stability.”
The OECD warned of a short, but intense global economic downturn. And it added the Coronavirus could create a domino effect as it spreads through advanced economies.
The Bank of Japan issued a statement: “The BoJ will monitor developments carefully, and strive to stabilise markets and offer sufficient liquidity via market operations and asset purchases.”
“Overseas and domestic financial markets continue to make unstable movements due to heightening uncertainty over the impact on the economy from the spread of the Coronavirus.”
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