FOREX TradingCharts.com

Financial News: Major Central Banks Led By Fed Unleash Stimulus

Major Central Banks Led By Fed Unleash Stimulus On Covid-19 Shock

03/16/2020 - 03:53:00 (RTTNews)

(RTTNews) - Leading central banks, led by the US Federal Reserve, decided on Sunday, to provide monetary stimulus to the world economy by boosting liquidity amid a global financial market crash as the coronavirus, or Covid-19, spreads hampering human activity and raising fears of a severe global recession.

The US Federal Reserve, the Bank of Canada, the Bank of England, the Bank of Japan, the European Central Bank and the Swiss National Bank announced a coordinated action to enhance the provision of global US dollar liquidity.

These central banks agreed to lower the pricing on the standing U.S. dollar liquidity swap arrangements by 25 basis points, so that the new rate will be the U.S. dollar overnight index swap (OIS) rate plus 25 basis points.

The US Federal Reserve reduced the interest rate to near zero on Sunday as the coronavirus outbreak harmed communities and disrupted economic activity.

Further, the Fed said it will increase its holdings of Treasury securities by at least $500 billion and its holdings of agency mortgage-backed securities by at least $200 billion.

The New Zealand central bank on Monday cut its interest rate by 75 basis points to 0.25 percent in an unscheduled move. The rate will remain at this level for at least the next 12 months, the bank said.

The RBNZ said the negative economic implications of the Covid-19 virus continue to rise warranting further monetary stimulus.

Elsewhere, the Reserve Bank of Australia said it is ready to buy government bonds and is set to unveil more measures on Thursday.

Governor Philip Lowe said the bank stands ready to purchase Australian government bonds in the secondary market to support the smooth functioning of that market.

In order to provide liquidity to the financial markets, Lowe said the central bank will also be conducting one-month and three-month repo operations in its daily market operations until further notice.

In addition, the RBA will conduct longer term repo operations of six-months maturity or longer at least weekly, as long as market conditions warrant.

Meanwhile, the Council of Financial Regulators said Australia's financial system is resilient and it is well placed to deal with the effects of Covid-19. Substantial financial buffers are available to be drawn down if required to support the economy.

The central bank reportedly added $5.9 billion into the banking system to ensure enough credit to businesses and households.

The Bank of Japan enhanced its massive monetary policy easing on Monday. The bank has decided to loosen the policy through conducting various operations including purchases of Japanese government bonds and the US dollar funds-supplying operations.

The bank also introduced a new operation to facilitate corporate financing and decided to actively purchase exchange-trade funds and Japan real estate investment trusts.

For comments and feedback: contact editorial@rttnews.com

Copyright(c) 2020 RTTNews.com. All Rights Reserved

Market News provided by RTTNews

RECENT INTERNATIONAL FINANCIAL NEWS


China's Bank Lending Exceeds Expectations (01 hr(s), 34 min(s), 54 sec(s) ago)
(RTTNews) - China's bank lending increased more than expected in March, suggesting that measur ...Full Story»

Romania's Inflation Steady At 3% (02 hr(s), 18 min(s), 54 sec(s) ago)
(RTTNews) - Romania's consumer prices increased at a steady pace in March, data from the Natio ...Full Story»

Dutch Export Growth Slows For Second Month (02 hr(s), 58 min(s), 54 sec(s) ago)
(RTTNews) - The Netherlands' goods exports grew at a slower pace for a second consecutive mont ...Full Story»

France Industrial Output Rises More Than Expected (04 hr(s), 08 min(s), 54 sec(s) ago)
(RTTNews) - French industrial production grew more than expected in February, data from the statis ...Full Story»

France Industrial Output Rises At Slower Pace (04 hr(s), 18 min(s), 54 sec(s) ago)
(RTTNews) - French industrial production grew more than expected in February, data from the statis ...Full Story»

Eurogroup Agrees Rescue Package To Mitigate Covid-19 Downturn (04 hr(s), 24 min(s), 54 sec(s) ago)
(RTTNews) - Eurozone finance ministers agreed an emergency plan to mitigate the downturn caused by ...Full Story»

China's Inflation Eases In March; PPI Falls For Second Month (07 hr(s), 52 min(s), 54 sec(s) ago)
(RTTNews) - China's consumer price inflation slowed more-than-expected to a five-month low in ...Full Story»

China Inflation Slows To 4.3% In March (33 min(s), 06 sec(s) ago)
(RTTNews) - Consumer prices in China were up just 4.3 percent on year in March, the National Burea ...Full Story»

Search

INTERNATIONAL FINANCIAL NEWS

China's Bank Lending Exceeds Expectations

04/10/2020 - 07:37 AM (RTTNews)
(RTTNews) - China's bank lending increased more than expected in March, suggesting that measur ...Full Story>>

Romania's Inflation Steady At 3%

04/10/2020 - 06:53 AM (RTTNews)
(RTTNews) - Romania's consumer prices increased at a steady pace in March, data from the Natio ...Full Story>>

Dutch Export Growth Slows For Second Month

04/10/2020 - 06:13 AM (RTTNews)
(RTTNews) - The Netherlands' goods exports grew at a slower pace for a second consecutive mont ...Full Story>>

France Industrial Output Rises More Than Expected

04/10/2020 - 05:03 AM (RTTNews)
(RTTNews) - French industrial production grew more than expected in February, data from the statis ...Full Story>>

France Industrial Output Rises At Slower Pace

04/10/2020 - 04:53 AM (RTTNews)
(RTTNews) - French industrial production grew more than expected in February, data from the statis ...Full Story>>
Copyright © 2020. All market data is provided by Barchart Solutions. Information is provided "as is" and solely for informational purposes, not for trading purposes or advice. To see all exchange delays and terms of use, please see disclaimer.