Global central banks step up battle against virus

Global Central Banks Step Up Battle Against Virus:

In response to the ongoing COVID-19 pandemic, central banks around the world have taken unprecedented measures to stabilize the global economy and mitigate the impact of the virus. Here are some of the key steps they have taken:

  1. Monetary Policy Easing: Central banks have cut interest rates to historic lows, injecting liquidity into the financial system to prevent a credit crunch. The Federal Reserve, European Central Bank, and Bank of England have all implemented negative interest rates, while the Bank of Japan has introduced a negative interest rate on some deposits.
  2. Quantitative Easing: Central banks have increased their quantitative easing programs, buying government bonds and other securities to inject liquidity and lower borrowing costs. The European Central Bank has launched a €1.35 trillion bond-buying program, while the Federal Reserve has expanded its quantitative easing program to $1.5 trillion.
  3. Emergency Lending Facilities: Central banks have set up emergency lending facilities to provide loans to banks, businesses, and individuals. The Federal Reserve has established a $2.3 trillion lending facility, while the European Central Bank has launched a €1.35 trillion lending program.
  4. Currency Intervention: Central banks have intervened in foreign exchange markets to stabilize currencies and prevent sharp fluctuations. The Japanese yen, for example, has been subject to intervention by the Bank of Japan to prevent it from strengthening too much.
  5. Collaboration and Coordination: Central banks have worked closely together to coordinate their responses to the pandemic. The G7 and G20 groups of central banks have held regular meetings to discuss their responses and share best practices.
  6. Support for Small Businesses: Central banks have provided targeted support to small businesses, which are often the most vulnerable to economic shocks. The Federal Reserve, for example, has established a $2.5 billion program to provide loans to small businesses.
  7. Fiscal Policy Support: Central banks have worked closely with governments to provide fiscal policy support, such as tax cuts and increased government spending. The European Central Bank has worked with the European Union to provide fiscal support to member states.

Some notable examples of central bank actions include:

These measures are designed to stabilize the global economy, prevent a credit crunch, and support businesses and individuals affected by the pandemic.