BOJ, BOE pledge to ensure stability amid virus fears

Bloomberg

Global central bankers from Japan to the UK pledged action aimed at stabilising financial markets rattled by the spreading coronavirus as pressure builds on them to ease monetary policy to safeguard their economies.
In an emergency statement on Monday, the Bank of Japan (BOJ) said it would “strive to provide ample liquidity and ensure stability in financial markets.” The Bank of England (BOE) followed up with a pledge to “ensure all necessary steps are taken to protect financial and monetary stability.”
The commitments came after Federal Reserve Chairman Jerome Powell opened the door to cutting interest rates in the US to contain the threat to economic growth. Goldman Sachs Group Inc economists now predict a wave of worldwide rate cuts and say central banks may deliver the reductions in tandem for first time since 2008.
“Global central banks will almost certainly all induce one form of easing or another, “ said Vishnu Varathan, head of economics and strategy at Mizuho Bank Ltd in Singapore.
In another sign of increasing worry among policy makers, the French government said on Monday that Group of Seven finance ministers will hold a conference call this week to coordinate their response to the spread of the virus.