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Global central bank response to the coronavirus outbreak

07/07/2020 | 04:27am EST

Central banks worldwide have slashed interest rates in recent months, providing in some cases unprecedented amounts of stimulus to help soften the blow to the global economy from the coronavirus pandemic and to keep markets functioning.

Interest rates set by the central banks listed are their usual benchmark policy rates unless stated otherwise.

Asset purchases, or quantitative easing (QE), are cited as a brief overview of announced intended amounts. This item does not attempt to list all of what are in some cases large numbers of smaller policy announcements.

For a separate FACTBOX outlining the policy response in major economies, including fiscal policy:


Country Policy Current Date Latest Quantitative easing/asset purchases/

rate rate change/decision market liquidity operations

United Fed funds 0.00-0.2 March 3 -50 bps Buying unlimited quantities of U.S.

States target 5 March 15 -100 bps Treasuries, mortgage-backed and agency

securities after initially announcing

an additional $700 billion

Buying municipal bonds, corporate

bonds and ETFs

Dollar swap lines set up with several

major central banks

$2.3 trillion in loan arrangements for

local governments, small and mid-sized


Offers to buy bonds of up to three

years' duration from counties with as

few as 500,000 residents and cities

with as few as 250,000 residents

Euro zone TLTRO rate -1.00 March 12 -25bps 750 billion euros in additional asset

No change to main purchases, taking the total to about

-0.50% deposit 1.1 trillion euros this year, after

rate or 0% refi initially adding 120 billion euros to

rate its existing asset-purchase programme

Removes cap on how much in bonds it

-25 bps may buy from any euro zone member


April 30 Launches a new loan scheme called

Pandemic Emergency Longer-Term

Refinancing Operations or PELTROs

Increases the size of its Pandemic

Emergency Purchase Programme to 1.35

trillion euros from 750 billion euros

and extends it until June 2021 at


Britain Bank Rate 0.10 March 11 -50 bps 200 billion pounds of additional asset

March 19 -15 bps purchases

Reduces capital buffer requirement for


Will buy investment-grade commercial

paper with maturities up to 12 months

Increases bond-buying programme by 100

billion pounds

Japan Interest -0.10 March 16 No change to -0.1% Planned annual increase in the Bank's

on excess short-term rate or government bond holdings held at 80

reserves around 0% JGB trillion yen

10-year yield

target 2 trillion yen of commercial paper and

corporate bonds to be bought by

September, temporarily lifts target

for annual purchases of ETFs to 12

trillion yen

Introduces new lending facility worth

8 trillion yen

Pledges to buy unlimited amounts of

bonds; will boost three-fold the

maximum amount of corporate bonds and

commercial debt it buys to 20 trillion

yen; other steps

Launches its own version of the U.S.

Federal Reserve's "Main Street"

lending programme to channel nearly

$280 billion to small businesses

Extends to March 2021 emergency relief

announced in March and April

Extends deadline for virus-combating

steps by six months

Offers to pump 1.7 trillion yen into

the economy under its lending scheme

Canada Overnight 0.25 March 4 -50 bps To buy C$5 billion of government

target March 13 -50 bps securities weekly

rate March 27 -50 bps

Eligible collateral for term repo

operations expanded

Launches C$50 billion insured mortgage

purchase programme; C$10 billion

credit support programme for


China 1-year 3.85 Feb 20 -10 bps Lowers 1-year medium-term lending

Loan Prime facility (MLF) rate on loans to

Rate April 20 -20 bps financial institutions to 2.95% from


Cuts the amount of cash that small

banks must hold as reserves by 50 bps

to 6.50%, releasing around 400 billion


Cuts 7-day reverse repo rate to 2.20%

from 2.40%

Cuts 5-year LPR by 10 bps to 4.65%

from 4.75%

Lowers the 1-year interest rate on its

targeted medium-term lending facility

(TMLF) by 20 bps to 2.95% from 3.15%

Australia Cash rate 0.25 March 3 -25 bps Government bond purchases, targeting

March 19 -25 bps around 0.25% for 3-year yields

A$15 billion purchases of residential

mortgage-backed and other asset-backed


A$90 billion funding facility to banks

at fixed rate of 0.25%

New Zealand Overnight 0.25 March 16 -75 bps To buy up to NZ$30 billion worth of

Cash Rate government bonds. Also will buy up to

NZ$3 billion of local government debt

Doubles the amount of bonds it will

buy as part of its quantitative easing

programme and says negative interest

rates will become an option in the


Norway Policy 0.00 March 13 -50 bps Central bank offers cheap loans to

rate March 20 banks and financial institutions

-75 bps

May 7

-25 bps

Sweden Repo rate 0.00 March 16 No change Central bank offers 500 billion crowns

in loans to companies via banks and

boosts its purchases of securities by

300 billion crowns

Expands asset purchase programme to

500 billion crowns and extends its

duration to the end of June 2021

Switzerland Policy -0.75 March 19 No change Sets up refinancing facility for

rate unlimited supply of credit to banking



Russia Policy 4.50 April 24 -50 bps


June 19 -100 bps

India Repo rate 4.00 March 27 -75 bps Targeted long-term repo operations and

other regulatory measures for banks

May 22 -40 bps worth up to 500 billion rupees

Cuts reverse repo rate 40 bps to 3.35%

Opens a special liquidity facility of

up to 500 billion rupees to help

mutual funds cope with liquidity


Indonesia 7-day 4.25 Feb. 20 -25 bps Cuts reserve requirement ratio by 200

reverse March 19 bps for conventional banks and 50 bps

repurchase -25 bps for Islamic banks, both to 3.50%,

rate June 18 tweaks liquidity rules, effective May

-25 bps 1

Brazil Selic rate 2.25 March 18 -50 bps Announces 1.2 trillion reais of

liquidity, credit and capital measures

May 6 -75 bps

June 17 -75 bps

South Korea Base rate 0.50 March 16 -50 bps -25 Central bank sets up plan for

bps brokerages to borrow funds against

May 28 collateral that includes AA- rated

corporate bonds

Raises the ceiling for its special

loans programme by 5 trillion won to

35 trillion won

South Repo rate 3.75 March 19 -100 bps Will buy South African government

Africa bonds on the secondary market

April 14 -100 bps

May 21 -50 bps

Mexico Overnight 5.00 March 20 -50 bps Announces liquidity and credit steps

target worth $31 billion, cuts rates on its

rate additional ordinary liquidity

facility, reduces by 50 billion pesos

April 21 -50 bps in total private banks' reserve


May 14 -50 bps

June 25 -50 bps

Turkey 1-week 8.25 March 17 -100 bps Central bank doubles limit for bond

repo rate buying this year to 10% of total

April 22 -100 bps central bank assets. Extends 60

billion lira worth of rediscount

May 21 -50 bps credits and adds more lending options

well below its 9.75% policy rate

Saudi Repo rate 1.00 March 3 -50 bps Saudi Arabian Monetary Authority sets

Arabia March 16 up 50 billion riyal package to help

-75 bps SMEs

Provides 50 billion riyals to support

liquidity in the banking sector


Armenia Refinancin 4.50 March 17 -25 bps

g rate

April 28 -25 bps

June 16 -50 bps

Bahrain 1-week 1.00 March 16 -75 bps Cuts overnight lending ratio to 1.70%

deposit from 2.45%


Chile Monetary 0.50 March 16 -75 bps

Policy March 31

Rate -50 bps

Colombia Interventi 2.50 March 27 -50 bps Adds nearly 30 trillion pesos of

on Rate liquidity, including reductions in

April 30 -50 bps reserve requirements, debt purchases

and repos

May 29 -50 bps

June 30 -25 bps

Czech 2-week 0.25 March 16 -50 bps

Republic repo rate March 26

-75 bps

May 7

-75 bps

Egypt Overnight 10.25 March 16 -300 bps



Ghana MPC Rate 14.50 March 18 -150 bps

Hong Kong Base Rate 0.86 March 4 -50 bps Cuts financial institutions' reserve

March 16 requirements to 1% from 2% of

-64 bps risk-weighted assets, estimated to be

worth HK$500 billion

Hungary Base rate 0.75 April 28 No change to main Began bond-buying and mortgage bond

base rate purchases on May 4 without any set

target amount

June 23 -15 bps

Iceland Deposit 1.00 March 11 -50 bps Announces asset purchases, cuts

rate March 18 capital reserve buffer to 0% from 2%,

-50 bps sets up credit facility to offer

May 20 collateralised loans to banks

-75 bps

Israel BOI 0.10 April 6 -15 bps Expands repo transactions to include

Interest corporate bonds; will provide loans to

Rate banks to increase credit to SMEs for 5

billion shekels

Jordan CBJ Main 2.50 March 4 -50 bps Cuts compulsory reserves for

Rate March 16 commercial banks to 5% from 7%, worth

-100 bps more than 500 million dinars of


Kazakhstan Base rate 9.50 April 3 -250 bps

Kenya Central 7.00 March 23 -100 bps Cuts cash reserve ratio for commercial

Bank rate banks to 4.25% from 5.25%, releasing

April 29 -25 bps an extra 35.2 billion shillings;

triples duration of repurchase

agreement transactions with banks to

90 days

Malaysia Overnight 1.75 March 3 -25 bps Cuts statutory reserve ratio by 100

policy bps to 2.00%, releasing 30 billion

rate May 5 -50 bps ringgit

July 7 -25 bps Announces steps to release an

estimated 16 billion ringgit of

liquidity into the banking system from

May 16

Mongolia Policy 9.00 April 13 -100 bps



Morocco Policy 1.50 March 17 -25 bps


June 16 -50 bps

Namibia Lending 4.25 April 15 -100 bps


Nigeria Lending 12.5 May 28 -100 bps


Pakistan SBP Policy 7.00 March 17 -75 bps


March 24 -150 bps

April 16

-200 bps

May 15

-100 bps

June 25

-100 bps

Peru Reference 0.25 March 19 -100 bps Announces short-term loans to private

rate April 9 pension fund managers to help ease the

-100 bps compliance with savings withdrawal law

Philippines RRP Rate 2.25 Feb. 6 -25 bps Reserve requirement ratio cut by 200

March 19 bps to 12%

-50 bps

April 16 Rates on the overnight deposit and

-50 bps lending facilities reduced to 1.75%

June 25 and 2.75%, respectively

-50 bps

Poland Reference 0.10 March 17 -50 bps Government bond purchases

rate April 8

May 28 -50 bps

-40 bps

Qatar Repo rate 1.00 March 16 -50 bps

Romania Policy 1.75 March 20 -50 bps Narrows corridor between lending and

rate deposit facilities, provides liquidity

to banks via repo transactions,

purchases leu-denominated debt on

secondary market

May 29 -25 bps

Serbia NBS 1.25 March 11 -50 bps


Rates April 9 -25 bps

June 11 -25 bps

Sri Lanka Standing 6.50 March 16 -25 bps Cuts its bank rate, the emergency

Lending April 3 funding rate for commercial banks, to

Facility -25 bps 10%, an effective 500-bps reduction

Rate May 6

-50 bps

Taiwan Policy 1.125 March 19 -25 bps T$200 billion for banks to support

rate SMEs

Thailand 1-day 0.50 Feb 5 -25 bps Will provide soft loans worth 500

repurchase March 20 billion baht plus a loan payment

rate -25 bps holiday to help SMEs; sets up

May 20 corporate bond stabilisation fund

-25 bps worth 400 billion baht and another to

provide liquidity for mutual funds;

government bond purchase programme

amounting to more than 100 billion

baht during 13-20 March 2020

Uganda Central 7.00 April 6 -100 bps

Bank rate

June 8 -100 bps

Ukraine NBU policy 6.00 March 13 -100 bps

rate April 23

-200 bps

June 11

-200 bps

Uzbekistan Policy 15.00 April 14 -100 bps


Vietnam Refinancin 5.00 March 17 -100 bps

g rate

(Compiled by Reuters Polls; Editing by Alison Williams)

© Reuters 2020
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