Economics

Policy Makers Intensify Response to Virus Amid Economic Fear

Markets see Fed cutting rates by 50 basis points this month
Goldman suggests central banks could coordinate cuts

WATCH: There’s no reason for the Fed not to act on the economic risks from teh coronavirus, says State Street’s Tim Graf.(Source: Bloomberg)

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By Lucy Meakin, Enda Curran, and William Horobin

March 2, 2020 at 8:29 AM UTC

Updated on

March 3, 2020 at 4:57 AM UTC

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Global policy makers sought to reassure markets that they’re ready to respond to the coronavirus outbreak, as fears mount that its spread could push the world economy toward recession.

Australia’s central bank reduced the cash rate Tuesday by a quarter percentage point to 0.5%, a record low. That marked a stunning reversal in recent days, with money markets predicting as recently as last Friday that the Reserve Bank would hold rates steady.