The Federal Reserve cut interest rates to almost zero Sunday, an emergency move that represented its second attempt to stimulate an economy that has been ravaged by the coronavirus pandemic.
The Fed cut rates to a target range of 0% to 0.25% and said it would expand its balance sheet by at least $700 billion in the coming weeks.
In the USA, the Federal Reserve also said it will purchase $US500 billion ($NZ820 billion) of Treasury securities and $US200 billion ($NZ328 billion) of mortgage-backed securities to smooth over market disruptions that have made it hard for banks and large investors to sell Treasuries.
The RBI has been taking some calibrated measures to ensure financial markets and institutions remain sound and resilient.
"The second round of effects of the pandemic could operate through a slowdown in growth in the domestic economic growth", said Das. "They are throwing everything they've got at this".
Precious metals took another beating on concerns that a wave of emergency stimulus measures by central banks won't be enough to improve a rapidly deteriorating economic outlook. Forex and bond markets are not immune.
Businesses and schools around the nation have begun temporarily shutting down around the country as efforts are made to contain the outbreak. South Korea and Kuwait both lowered rates, while Russian Federation and Germany were throwing together multi-billion dollar anti-crisis funds. "The performance of the economy and the markets will be mainly determined by the severity and duration of the virus' outbreak".
The Fed announced several other actions, including letting banks borrow from the discount window for as long as 90 days and reducing reserve requirement ratios to zero per cent.
In a news conference Fed chairman Jerome Powell said the coronavirus epidemic is having a "profound" impact on the economy, especially on industries like travel and leisure.
Governor Beshear Tests Negative For Coronavirus
Right now, the state is limiting its testing resources for those who are sickest or most vulnerable, Beshear said. Earlier on Monday, Beshear said he would waive the waiting period to access unemployment benefits .
Depositors can access full banking services from Wednesday evening. In light of these developments, the Committee chose to lower the target range, ' the Fed said in a statement.
Base on current evaluation, the RBI proposes to conduct another six months U.S. dollar/ Rupee sell-buy swap on 23 March; will conduct LTRO in multiple tranches upto a total amount of Rs 1 lakh crores at the policy rate.
Futures had quickly hit their down limits overnight but the SPDR S&P 500 exchange traded fund was pointing down 10%, while shares of Bank of America Corp, JPMorgan, Goldman Sachs and Citigroup fell between 14% and 17% in premarket trading.
The gold price jumped out of the gate on the Comex market in NY, touching a high of $1,554.30, up $67.80 an ounce, or 4.6% compared to Monday's close.
"It makes me very happy", said the president.
Following the Fed, New Zealand slashed rates to a record low, while European Union finance ministers plan to agree on a coordinated economic response. She did support the Fed's other actions to boost credit markets. As businesses across the country see their revenues dwindle as consumers stay home, they will seek short-term loans to maintain their payrolls.
The Fed also said it would support USA banks that began to tap the capital and liquidity buffers they built up in the aftermath of the 2008 financial crisis and would reduce reserve requirement ratios to 0 per cent effective on March 26. With the disease turning into a global pandemic, it requires the intervention of global central banks, as well as governments, to prevent USA economic growth to enter a period of stagnation that may outpace the global financial crisis of 2008-2009. Its tools - meant to ease borrowing rates, facilitate lending and boost confidence - are not ideally suited to offset a fear-driven shutdown in spending and traveling. This will be followed by a review of performance of LTRO, he said.
"They pulled out whatever weapons they had and my sense is I think it may help initially but I don't think it goes much further because this is still a developing issue". JPMorgan Chase predicts the economy will shrink at a 2% annual rate in the current quarter and 3% in the April-June quarter.