As Coronavirus Spreads Rapidly, Central Banks Spring Into Action

Global central bankers are biding their time as the coronavirus fallout reverberates through the world economy, which they had hoped was stabilising after its worst year since the financial turmoil of 2009.

While yet to respond with major stimulus, monetary policymakers across the globe have expressed concern and signalled a willingness to act if the virus delivers a sustained triple blow to demand, inflation, and financial markets.

Bank of Japan Governor Haruhiko Kuroda said he would not hesitate to shield his economy. Australia, the developed economy most exposed to China, said it is still prepared to lower rates if needed, while stressing that it is important not to catastrophise.