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FACTBOX-Global central bank response to the coronavirus outbreak

Published 04/20/2020, 09:03 PM
Updated 04/20/2020, 09:10 PM

LONDON, April 20 (Reuters) - Central banks around the world have slashed interest rates over
the past few months, providing in some cases unprecedented amounts of stimulus to help soften
the blow to the world economy from the coronavirus pandemic and to keep markets functioning.
Interest rates set by that country's central bank listed are the 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.

MAJOR GLOBAL CENTRAL BANKS
Country Policy Current Date Latest Quantitative easing/asset purchases/
rate rate change/d market liquidity operations
ecision
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

Also 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
businesses

Euro TLTRO rate -0.75 March 12 -25bps 750 billion euros in additional asset
zone purchases, taking the total to about 1.1
No trillion euros this year, after initially
change adding 120 billion euros to its existing
to main asset-purchase programme
-0.50%de
posit Removes cap on how much in bonds it may
rate or purchase from any euro zone member
0% refi country
rate

Britain Bank Rate 0.10 March 11 -50 bps 200 billion pounds of additional asset
March 19 -15 bps purchases

Reduced capital buffer requirement for
banks

Will buy investment-grade commercial
paper with maturities up to 12 months

Japan Interest -0.10 March 16 No Planned annual increase in the Bank's
on excess change government bond holdings held at 80
reserves to -0.1% trillion yen
short-te
rm rate 2 trillion yen of commercial paper and
or corporate bonds to be bought by
around September, temporarily lift in target for
0% JGB annual purchases of ETFs to 12 trillion
10-year yen.
yield
target Introduces new lending facility worth 8
trillion yen
Canada Overnight 0.25 March 4 -50 bps To purchase C$5 billion of government
target March 16 -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 businesses

China 1-year 3.85 Feb 20 -10 bps Lowers 1-year medium-term lending
Loan Prime facility (MLF) rate on loans to financial
Rate April 20 -20 bps institutions to 2.95% from 3.15%

Cuts the amount of cash that small banks
must hold as reserves by 50 basis points
to 6.50%, releasing around 400 billion
yuan

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%

Australi Cash rate 0.25 March 3 -25 bps Government bond purchases, targeting
a March 19 -25 bps around 0.25% for 3-year yields

A$15 billion purchases of residential
mortgage-backed and other asset-backed
securities

A$90 billion funding facility to banks at
fixed rate of 0.25%

New Overnight 0.25 March 16 -75 bps To buy up to NZ$30 billion worth of
Zealand Cash Rate government bonds. Also will buy up to
NZ$3 billion of local government debt

Norway Policy 0.25 March 13 -50 bps Central bank offers cheap loans to banks
rate and financial institutions
March 20 -75 bps

Sweden Repo rate 0 March 16 No Central bank offers 500 billion crowns in
change loans to companies via banks and boosts
its purchases of securities by 300
billion crowns

Switzerl Policy -0.75 March 19 No Sets up refinancing facility for
and rate change unlimited supply of credit to banking
system

OTHER G20 CENTRAL BANKS
India Repo rate 4.40 March 27 -75 bps Targeted long-term repo operations and
other regulatory measures for banks worth
up to 500 billion rupees

Cuts reverse repo rate 25bps to 3.75%

Indonesi 7-day 4.50 March 19 -25 bps Cuts reserve requirement ratio by 200 bps
a reverse for conventional banks and 50 bps for
repurchase Islamic banks, both to 3.50%, tweaks
rate liquidity rules, effective May 1

Brazil Selic rate 3.75 March 18 -50 bps Announces 1.2 trillion reais of
liquidity, credit and capital measures

South Base rate 0.75 March 16 -50 bps Central bank sets up plan for brokerages
Korea to borrow funds against collateral that
includes AA- rated corporate bonds

South Repo rate 4.25 March 19 -100 bps Will buy South African government bonds
Africa on the secondary market
April 14 -100 bps

Mexico Overnight 6.50 March 20 -50 bps Cuts rates on its additional ordinary
target liquidity facility, reduces by 50 billion
rate pesos in total private banks' reserve
requirement

Turkey 1-week 9.75 March 17 -100 bps Central bank doubles limit for bond
repo rate buying this year to 10% of total central
bank assets. Extends 60 billion lira
worth of rediscount credits and adds more
lending options well below its 9.75%
policy rate.

Saudi Repo rate 1.00 March 16 -75 bps Saudi Arabian Monetary Authority sets up
Arabia 50 billion riyal package to help SMEs

OTHER WORLD CENTRAL BANKS
Armenia Refinancin 5.25 March 17 -25 bps
g rate
Bahrain 1-week 1.00 March 16 -75 bps Cuts overnight lending ratio to 1.70%
deposit from 2.45%
rate
Chile Monetary 0.50 March 16 -75 bps
Policy
Rate March 31 -50 bps

Colombia Interventi 3.75 March 27 -50 bps Adds nearly 30 trillion pesos of
on Rate liquidity, including reductions in
reserve requirements, debt purchases and
repos

Czech 2-week 1.00 March 16 -50 bps
Republic repo rate
March 26 -75 bps

Egypt Overnight 10.25 March 16 -300 bps
lending
rate
Ghana MPC Rate 14.50 March 18 -150 bps

Hong Base Rate 1.50 March 4 -50 bps Cuts financial institutions' reserve
Kong requirements to 1% from 2% of
risk-weighted assets, estimated to be
worth HK$500 billion

Iceland Deposit 1.75 March 11 -50 bps Announces asset purchases, cuts capital
rate reserve buffer to 0% from 2%, sets up
March 18 -50 bps credit facility to offer collateralized
loans to banks

Israel BOI 0.10 April 6 -15 bps Central bank expands repo transactions to
Interest include corporate bonds; will provide
Rate loans to banks to increase credit to SMEs
for 5 billion shekels

Jordan CBJ Main 2.50 March 5 -50 bps Cuts compulsory reserves for commercial
Rate banks to 5% from 7%, worth more than 500
March 16 -100 bps million dinars of liquidity

Kazakhst Base rate 9.50 April 3 -250 bps
an
Kenya Central 7.25 March 23 -100 bps Cuts cash reserve ratio for commercial
Bank rate banks to 4.25% from 5.25%, releasing an
extra 35.2 billion shillings; triples
duration of repurchase agreement
transactions with banks to 90 days

Malaysia Overnight 2.50 March 3 -25 baps Cuts statutory reserve ratio (SRR) by
policy 100bps to 2.00%, releasing 30 billion
rate ringgit

Mongolia Policy 9.00 April 13 -100 bps
Interest
Rate
Morocco Policy 2.00 March 17 -25 bps
rate
Namibia Lending 4.25 April 15 -100 bps
rate
Pakistan SBP Policy 9.00 March 17 -75 bps
Rate
April 16 -200 bps
Peru Reference 0.25 March 19 -100 bps
rate
April 9 -100 bps

Philippi RRP Rate 2.75 March 19 -50 bps Reserve requirement ratio cut by 200 bps
nes to 12%
April 16 -50 bps

Poland Reference 0.50 March 17 -50 bps Government bond purchases
rate
April 8 -50 bps

Qatar Repo rate 1.00 March 16 -50 bps
Romania Policy 2.00 March 20 -50 bps Central bank narrows corridor between
rate lending and deposit facilities, provides
liquidity to banks via repo transactions,
purchases leu-denominated debt on
secondary market

Serbia NBS 1.50 March 11 -50 bps
Interest
Rates -25 bps
April 9
Sri Standing 7.00 March 16 -25 bps Cuts its bank rate, the emergency funding
Lanka Lending rate for commercial banks, to 10%, an
Facility April 3 -25 bps effective 500bps reduction
Rate
Taiwan Policy 1.125 March 19 -25 bps T$200 billion for banks to support SMEs
rate
Thailand 1-day 0.75 Feb 5 -25 bps Central bank will provide soft loans
repurchase worth 500 billion baht plus a loan
rate March 20 -25 bps payment holiday to help SMEs; sets up
corporate bond stabilisation fund worth
400 billion baht and another one to
provide liquidity for mutual funds;
government bond purchase program
amounting more than 100 billion baht
during 13-20 March 2020

Uganda Central 8.00 April 6 -100 bps
Bank rate
Uzbekist Policy 15.00 April 14 -100 bps
an rate
Vietnam Refinancin 5.00 March 17 -100 bps
g rate


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