Bancos centrales

• PEPP is the central pillar of ECB crisis response to the virus outbreak

• OMT is part of our toolbox

• Doesn't want to speculate about the use of OMT

• Most urgent thing is coordinated fiscal policy response

Reuters reports that European Central Bank's vice-president Luis de Guindos said that so-called 'coronabonds', or common EU bonds, are not the only or the most effective instrument in the fight against the coronavirus..

"It is neither the only defensive tool nor certainly the most powerful," De Guindos told radio station Cadena Cope on Monday.

"The most powerful is undoubtedly the European Central Bank," he said.

• Believes adopted measures are sufficient

• We are ready to do more if necessary

• ECB ready to increase size of bond purchase programme

• Also ready to change its composition and duration, where necessary

• Expansive monetary policies must be kept even when virus outbreak ends

• The new package will be effective

• There will be no liquidity problems

• Fall in long-term rates will help governments fighting the virus

• We have all the necessary flexibility

• We are not a currency manipulator

• We do not intervene to take advantage of other currencies

• Central banks around the world are in close contact

• But monetary policy alone cannot solve this crisis

• Monetary policy is complementary and can support fiscal measures

Comments by RBA governor, Philip Lowe:

• Expects cash rate to remain at current level for some years, but not forever

• RBA doing all it can to lower funding costs, support supply of credit to businesses

• RBA will not be buying bonds directly from the government

• May take some time for yields to fall from current level to 25 bps

• Expects yield target to be removed before raising the cash rate

• Expects a recovery once the virus is contained

• Also expecting significant job losses as the virus fallout hits

• Will maintain current setting of rates until a strong recovery is in place

• Nothing is off the table with policy

• Expects bond yields across term structure to decline

• Will do whatever is necessary to make sure credit is available

• Says that we've done all we can do with the cash rate

• The focus now is on taking other measures to support lending

• It was impossible for ECB to meet market expectations

• Crisis can have a cleansing effect for the economy

• Sees ECB consensus that the crisis needs fiscal measures

• Increases annual pace of ETF purchases to ¥12 trillion (previously ¥6 trillion)

• 10-year JGB yields target maintained at about 0%

• Introduces new lending program to smooth funding for firms

• Strengthens stance on asset purchases

• To purchase more commercial paper, corporate bonds

• BOJ says will take additional easing measures as needed

• May increase or cut ETF goal depending on situation

• Economic activity likely to remain weak for the time being

• Somewhat weak indicators of inflation expectations have been seen recently

• Need to watch for the impact of oil price drop

• Watching the coronavirus impact very closely

• We can front load bond purchases if needed

• ECB will do more if needed

• Widening of spreads makes transmission of policy more difficult

• Board decided to lower the cash rate by 25 basis points to 0.50 per cent.

• The Board took this decision to support the economy as it responds to the global coronavirus outbreak.

• The coronavirus has clouded the near-term outlook for the global economy and means that global growth in the first half of 2020 will be lower than earlier expected.

• Prior to the outbreak, there were signs that the slowdown in the global economy that started in 2018 was coming to an end.

• It is too early to tell how persistent the effects of the coronavirus will be and at what point the global economy will return to an improving path.

• Policy measures have been announced in several countries, including China, which will help support growth.

• Inflation remains low almost everywhere and unemployment rates are at multi-decade lows in many countries.

• Long-term government bond yields have fallen to record lows in many countries, including Australia.

• The unemployment rate increased in January to 5.3 per cent and has been around 5¼ per cent since April last year.

• Wages growth remains subdued and is not expected to pick up for some time.

• A gradual lift in wages growth would be a welcome development and is needed for inflation to be sustainably within the 2-3 per cent target range.

• RBNZ forecasts for the OCR show they do not expect to cut this year at all

• Sees official cash rate at 1.01% in June 2020 (previous 0.9%)

• Sees official cash rate at 1.03% in March 2021 (previous 0.9%)

• Sees official cash rate at 1.1% in June 2021 (previous 0.94%)

• Overall impact of coronavirus on New Zealand will be of a short duration

• Risks that impact will be larger and more persistent

• Low rates necessary to keep employment and inflation around target

• economic growth expected to accelerate over second half of 2020

• Employment is at or slightly above its max sustainable level

• Inflation close to 2% mid point

• Committee agreed low interest rates had helped to get employment and inflation to around their target levels

• Committee discussed financial stability risks from ongoing low rates

• Members noted the bank's assessment that marginal changes to the ocr would not materially affect these risks at this time

• Members discussed the better mix of policy stimulus in the projections, given additional fiscal stimulus is reducing the burden on monetary policy

• Committee discussed alternative cash rate settings and the various trade-offs involved

• Incoming information since the last Governing Council meeting in early December is in line with the Governing Council's baseline scenario of ongoing, but moderate, growth of the euro area economy.

• In particular, the weakness in the manufacturing sector remains a drag on euro area growth momentum.

• At the same time, ongoing, albeit decelerating, employment growth and increasing wages continue to support the resilience of the euro area economy.

• The risks surrounding the euro area growth outlook, related to geopolitical factors, rising protectionism and vulnerabilities in emerging markets, remain tilted to the downside, but have become less pronounced

• While inflation developments remain subdued overall, there are some signs of a moderate increase in underlying inflation in line with expectations.

• The unfolding monetary policy measures are underpinning favourable financing conditions for all sectors of the economy.

• In particular, easier borrowing conditions for firms and households are supporting consumer spending and business investment.

• This will sustain the euro area expansion, the build-up of domestic price pressures and, thus, the robust convergence of inflation to the Governing Council's medium-term aim.

• Broadly in line with our expectations, the euro area economy continues to grow, though still with modest momentum.

• The domestic economy remains relatively resilient.

• Yet, global factors weigh on euro area growth.

• To be sure, there are tentative signs of stabilisation, forward-looking indicators have become in slightly more optimistic

• While uncertainties surrounding the global economic environment remain elevated, those related to trade tensions between the United States and China are receding

• Other risks, however, are still lingering or - as for the uncertainty surrounding the impact of the coronavirus - are a renewed source of concern.

• The overall moderate growth performance is delaying the pass-through from wage increases to prices and inflation developments remain subdued