Central Banks

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The Federal Reserve in a surprise move Sunday evening slashed rated 1.00% to zero after an emergency meeting  with Jerome Powell as Chairman.  Fed expanded QE $700 Billion on Cornoavirus damage to economy. The Fed corinated the move with other central Banks

The Bank of Canada cut its key lending rate to 0.75 percent on Friday in an unexpected move. This is the second 50bp cut in a week by the BoC in response to Coronavirus panic. The Toronto Stock Exchange had it's biggest fall 12% in 80 years yesterday.

Fed Chairman Powell gave an unannounced speech Friday afternoon in response to the fear and loathing over the coronavirus on Friday. After record highs just over a week ago the Dow had been hit by over 1000 points three days in a row.

Richmond Fed President Tom Barki peaking at Harvard on Thursday said that the US economy moving along at a very good pace with reduced trade uncertainty. However he is mulling if the US has necessary tools to weather a downturn.

The Reserve Bank of Australia held interest rates in February at a historic low of  0.75 per cent. RBA said given long lags in monetary policy, decided to hold steady

The Federal Reserve as expected kept rates at at 1.50%-1.75%, as expected after a two day meeting on Wednesday with Jerome Powell as Chairman. Markets had priced in a 97% chance of No Change. Leaves forecasts for GDP and inflation unchanged, lowers unemployment.

Yves Mersch, senior member of the Executive Board of the ECB on Monday warned that asset prices are currently at very elevated levels. This comes at a time near all time highs in many global stock markets despite elvated risk.

ECB left rates unchanged as expected in December in the second month of controversial Christine Lagarde at the helm. The bank left deposit facility interest rates at .-50% and held steady rates on the main refinancing operations and on the marginal lending facility unchanged. 

The Bank of Canada held its key lending rate at 1.75 percent on Wednesday as expected. The BoC was more dovish however "growth in the near term will be weaker, and the output gap wider, than the Bank projected in October."

Bank of England's Silvana Tenreyro said today her inclination is towards a rate cut if downside risks emerge, currently the BoE base rate is 0.75%. She added discussing the possibility of stimulus, current asset purchase target is £435 billion with a corporate bonds  £10 billion.

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