July 16, 2020 / 2:22 PM / in 10 days

FACTBOX-Global central bank response to the coronavirus outbreak

    LONDON, July 24 (Reuters) - 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:
    
                                     MAJOR GLOBAL CENTRAL BANKS    
 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
                                                                  businesses
                                                                  
                                                                  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
                                                                  country
                                                                  
                                                                  Launches a new loan scheme called
                                    April 30                      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
                                                                  least
 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
                                                                  banks
                                                                  
                                                                  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
                                                                  businesses
                                                                  
 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
                                                                  3.15%
                                                                  
                                                                  Cuts the amount of cash that small
                                                                  banks must hold as reserves by 50 bps
                                                                  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%
                                                                  
                                                                  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
                                                                  securities
                                                                  
                                                                  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
                                                                  future
                                                                  
 Norway       Policy      0.00      March 13  -50 bps             Central bank offers cheap loans to
              rate                                                banks and financial institutions 
                                    March 20  -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
                                                                  system
                                                                  
                                       OTHER G20 CENTRAL BANKS    
 Russia       Policy      4.25      April 24  -50 bps             
              rate                                                
                                    June 19   -100 bps            
                                                                  
                                    July 24   -25 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
                                                                  strain 
 Indonesia    7-day       4.00      Feb. 20   -25 bps             Cuts reserve requirement ratio by 200
              reverse                                             bps for conventional banks and 50 bps
              repurchase            March 19  -25 bps             for Islamic banks, both to 3.50%,
              rate                                                tweaks liquidity rules, effective May
                                    June 18   -25 bps             1 
                                                                  
                                    July 16   -25 bps             
                                                                  
                                                                  
                                                                  
 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             Central bank sets up plan for
                                                                  brokerages to borrow funds against
                                                                  collateral that includes AA- rated
                                                                  corporate bonds
                                                                  
                                                                  Raises the ceiling for its special
                                                                  loans programme by 5 trillion won to
                                                                  35 trillion won    
                                    May 28    -25 bps             
 South        Repo rate   3.50      March 19  -100 bps            Will buy South African government
 Africa                                                           bonds on the secondary market
                                    April 14  -100 bps            
                                                                  
                                    May 21    -50 bps             
                                                                  
                                    July 23   -25 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
                                                                  requirement
                                    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                                                           up 50 billion riyal package to help
                                    March 16  -75 bps             SMEs
                                                                  
                                                                  Provides 50 billion riyals to support
                                                                  liquidity in the banking sector
                                      OTHER WORLD CENTRAL BANKS    
 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%
              rate                                                
 Chile        Monetary    0.50      March 16  -75 bps             
              Policy                                              
              Rate                  March 31  -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            
              lending                                             
              rate                                                
 Ghana        MPC Rate    14.50     March 18  -150 bps            
                                                                  
 Hong Kong    Base Rate   0.86      March 4   -50 bps             Cuts financial institutions' reserve
                                                                  requirements to 1% from 2% of
                                    March 16  -64 bps             risk-weighted assets, estimated to be
                                                                  worth HK$500 billion
 Hungary      Base rate   0.60      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             
                                                                  
                                    July 21   -15 bps             
 Iceland      Deposit     1.00      March 11  -50 bps             Announces asset purchases, cuts
              rate                                                capital reserve buffer to 0% from 2%,
                                    March 18  -50 bps             sets up credit facility to offer
                                                                  collateralised loans to banks 
                                    May 20    -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
                                                                  
                                                                  Plans to buy 15 billion shekels of
                                                                  higher-rated corporate bonds in the
                                                                  secondary market
                                                                  
 Jordan       CBJ Main    2.50      March 4   -50 bps             Cuts compulsory reserves for
              Rate                                                commercial banks to 5% from 7%, worth
                                    March 16  -100 bps            more than 500 million dinars of
                                                                  liquidity    
 Kazakhstan   Base rate   9.00      April 3   -250 bps            Cuts its policy rate band to 1.5
                                                                  percentage points from 2 percentage
                                    July 20   -50 bps             points
 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            
              Interest                                            
              Rate                                                
 Morocco      Policy      1.50      March 17  -25 bps             
              rate                                                
                                    June 16   -50 bps             
 Namibia      Lending     4.25      April 15  -100 bps            
              rate                                                
 Nigeria      Lending     12.5      May 28    -100 bps            
              rate                                                
 Pakistan     SBP Policy  7.00      March 17  -75 bps             
              Rate                                                
                                    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                                                pension fund managers to help ease the
                                    April 9   -100 bps            compliance with savings withdrawal law
                                                                  
 Philippines  RRP Rate    2.25      Feb. 6    -25 bps             Reserve requirement ratio cut by 200
                                                                  bps to 12%
                                    March 19  -50 bps             
                                                                  Rates on the overnight deposit and
                                    April 16  -50 bps             lending facilities reduced to 1.75%
                                                                  and 2.75%, respectively
                                    June 25   -50 bps             
                                                                  
 Poland       Reference   0.10      March 17  -50 bps             Government bond purchases
              rate                                                
                                    April 8   -50 bps             
                                    May 28                        
                                              -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             
              Interest                                            
              Rates                           -25 bps             
                                    April 9                       
                                              -25 bps             
                                    June 11                       
 Sri Lanka    Standing    5.50      March 16  -25 bps             Cuts its bank rate, the emergency
              Lending                                             funding rate for commercial banks, to
              Facility              April 3   -25 bps             10%, an effective 500-bps reduction
              Rate                                                
                                    May 6     -50 bps             
                                                                  
                                    July 9    -100 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                                          billion baht plus a loan payment
              rate                  March 20  -25 bps             holiday to help SMEs; sets up
                                                                  corporate bond stabilisation fund
                                    May 20    -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            
              rate                                                
 Vietnam      Refinancin  5.00      March 17  -100 bps            
              g rate                                              
  

 (Compiled by Reuters Polls; Editing by Alison Williams, Alexandra Hudson, William Maclean,
Barbara Lewis)
  
Nuestros Estándares:Los principios Thomson Reuters
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