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FACTBOX-Global central bank response to the coronavirus outbreak

Published 20/04/2020, 11:03 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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