The global coronavirus outlook significantly affected the global economic growth. Therefore, most central banks decided to cut their interest rates to support domestic economies and diminish damages caused by the epidemic.
On Tuesday, March 3, the Reserve Bank of Australia published its Rate Statement. The Australian policymakers decided to cut the Cash Rate to the 0.50% level.
According to the official release: "The global outbreak of the coronavirus is expected to delay progress in Australia towards full employment and the inflation target. The Board therefore judged that it was appropriate to ease monetary policy further to provide additional support to employment and economic activity."
At the same day, the Federal Open Market Committee held an emergency meeting. The US policymakers chose to lower the Federal Funds Rate to the target range of 1.00% to 1.25%.
Note that the Federal Open Market Committee held another emergency gathering on Sunday, March 15. As the result, the Committee cut the Rate to the target range of 0.00% to 0.25%.
The decision was made due to the global coronavirus outbreak, as it affected the US economy significantly. According to the available economic data, the US economy is experiencing challenging period, as the epidemic weigh on economic activity in the medium term.
On Wednesday, March 4, the Bank of Canada released the Rate Statement. The Bank decreased the Overnight Rate to 1.25%.
Note that on Friday, the Bank of Canada held an emergency meeting and decided to lower the Overnight Rate once again to 0.75%.
According to the official release: "While Canada's economy has been operating close to potential with inflation on target, the COVID-19 virus is a material negative shock to the Canadian and global outlooks, and monetary and fiscal authorities are responding."
On Wednesday, March 11, the Bank of England conducted an emergency meeting and issued the Monetary Policy Summary. The Monetary Policy Committee cut the Official Bank Rate by 0.50% to 0.25%. The decision was made also due to the global impact of Covid-19.
On Thursday, March 12, the European Central Bank released the Monetary Policy Statement. The Governing Council agreed to maintain the Main Refinancing Rate unchanged at 0.00%.
According to the official release: "The Governing Council expects the key ECB interest rates to remain at their present or lower levels until it has seen the inflation outlook robustly converge to a level sufficiently close to, but below, 2% within its projection horizon, and such convergence has been consistently reflected in underlying inflation dynamics."
On Sunday, March 15, the Reserve Bank of New Zealand conducted an emergency meeting. The Bank also decided to cut the Official Cash Rate to 0.25% for the next 12 months to minimize damage from the coronavirus outbreak.
On Monday, March 16, the Bank of Japan published its Monetary Policy Statement. Initially, the Statement had to be released on Friday, March 20.
The Japanese policymakers decided to keep the Policy Rate unchanged at negative 0.10%. However, the Bank introduced the Special Funds-Supplying Operations to Facilitate Corporate Financing regarding the Novel Coronavirus (COVID-19).
On Thursday, March 19, the Swiss National Bank will publish its Monetary Policy Assessment. Market participants expect the Bank to maintain the Policy Rate unchanged at negative 0.75%.
Also, note that the Bank of England still plans to issue its Monetary Policy Statement on Thursday, March 26.