Cheat Sheet: Who Has Done What for Their Economies Since the Coronavirus Pandemic Hit?

Cheat Sheet: Who Has Done What for Their Economies Since the Coronavirus Pandemic Hit?

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Unless you’ve been too busy figuring out how to do a viral TikTok post, then you’ll know that the Coronavirus that hit China in late 2019 has now made its way across oceans and has forced authorities to shut down all but the most basic of economic activities.

Thing is, these harsh (but necessary) measures are gonna cost economies. A LOT.

Fortunately, policymakers haven’t been sitting on their hands. In fact, some of them have thrown the kitchen sink, their cats, and their last rolls of toilet paper in the hopes of easing market concerns.

Here’s a list of the monetary and fiscal policy changes that major governments have done so far in March:


March 3 Reserve Bank of Australia (RBA) cut its interest rates by 50 basis points to a record low of 0.50%
March 11 FISCAL: Government unveils $2.4 billion AUD health package
March 12 FISCAL: Government announces $17.6 billion economic stimulus package that includes tax relief and cash payments for welfare recipients
March 19 In an out-of-schedule meeting, RBA cut its rates by another 25 basis points to an all-time low of 0.25%
RBA will buy government bonds and target 0.25% yield on 3-year bonds
RBA to provide a $90 billion term funding facility to help small and medium-sized businesses
RBA will conduct daily one-month and three-month repo operations and weekly long-term repo operations “until further notice”

New Zealand

March 16 In an unscheduled move, Reserve Bank of New Zealand (RBNZ) cut its interest rates by 75 basis points from 1.0% to 0.25%
RBNZ: rates will remain at this level “for at least the next 12 months”
RBNZ: large scale asset purchase program “preferable” to further rate cuts “if needed”
March 17 FISCAL: Government reveals 12.1 billion NZD stimulus package that includes wage subsidies, tax breaks, boosts to healthcare


March 4 Bank of Canada (BOC) cut its interest rates by 50 basis points from 1.75% to 1.25%
March 12 BOC broadens scope of bond buyback program, done weekly across all benchmark maturity sectors “until further notice”
BOC temporarily adds bi-weekly Term Repo operations for 6 and 12-month terms
March 13 In an unscheduled meeting, BOC cut its rates by another 50 basis points to 0.75%
BOC: “ready to adjust monetary policy further if required”
BOC announces plans to broaden eligible collateral of its Standing Term Liquidity Facility
BOC opens a new Bankers Acceptance Purchase Facility for small and medium-sized businesses
FISCAL: Government announces $10 billion credit program to “coordinate financing and credit insurance solutions for Canadian businesses”
FISCAL: Government lowers Domestic Stability Buffer requirement for domestic systemically important banks by 1.25% to free up $300 billion worth of lending capacity for large Canadian banks
March 18 FISCAL: Government announces 82 billion CAD in stimulus, with 27 billion CAD allotted for direct support for individuals and 55 billion CAD for tax deferrals for households and businesses
  Chart of the Day NZDJPY


March 10 FISCAL: Government announced 1 trillion JPY worth of aid, with 500 billion JPY earmarked for zero-interest loans to small and mid-sized businesses
March 13 In an unscheduled decision, the Bank of Japan (BOJ) announced its 200 billion JPY purchase of government bonds with five to ten years maturity
BOJ injects 1.5 trillion JPY worth of liquidity via lending for two weeks
March 16 After an unscheduled meeting, BOJ decides to double its annual ETF and J-REITS purchases to 12 trillion JPY and 180 billion JPY respectively
BOJ will increase target bond and commercial paper purchases by 2 trillion JPY by September
BOJ to provide 8 trillion JPY worth of loans against corporate debt at 0.0% interest rate
BOJ lowers dollar funding loan rate by 0.25%, offered on a weekly basis with 84-day maturity
Kuroda: “If necessary, we can deepen negative rates further”
March 19 BOJ makes an unscheduled purchase of 1.3 trillion JPY worth of government bonds

United Kingdom

March 11 Bank of England (BOE) made an unscheduled announcement to cut its interest rates by 50 basis points to 0.25%
BOE introduces new Term Funding scheme for small and medium-sized enterprises, offering four-year funding over the next 12 months. The scheme could provide 100 billion GBP in term funding
BOE to maintain its sterling non-financial investment-grade corporate bond purchases at 10 billion GBP
BOE will maintain its stock of U.K. government bond purchases at 435 billion GBP
Financial Policy Committee (FPC) cut the “UK countercyclical capital buffer rate” from 1% to 0%. It’s expected to support 190 billion GBP in business lending
FISCAL: Government announces 30 billion GBP stimulus plan (5 billion GBP for the health care system; 7 billion GBP for the labor market, and 18 billion GBP for looser fiscal policies)
March 19 In a special meeting, BOE cut its interest rates by 15 basis points to an all-time low of 0.1%
BOE increased its asset purchasing program by 200 billion GBP
  Daily Market Outlook, February 24, 2020 

Euro Zone

March 5 FISCAL: European Union gives fiscal leeway for individual ecoomies to deal with economic impact of Coronavirus
March 12 The European Central Bank (ECB) keeps its interest rates unchanged BUT it launches another round of targeted long term refinancing operations (TLTRO)
ECB eases conditions for its TLTRO
ECB announces plans to add 120 billion EUR to its planned asset purchases in 2020
ECB eases capital and liquidity restrictions for banks
March 17 FISCAL (France): Government allocates 45 billion EUR  for social security contributions, unemployment benefits, and solidarity fund for self-employed and shopkeepers
March 19 ECB launches 750 billion EUR Pandemic Emergency Purchase Program (PEPP) that will run until the “crisis phase” of the epidemic is over
ECB’s Lagarde: “Extraordinary times require extraordinary action”

United States

March 6 FISCAL: Trump signs $8.3B “Phase One” package to help state and local governments and fund research, quarantine, and sanitation
March 9 Fed surprises markets with 50-basis point interest rate cut, bringing its target range to 1.00% – 1.25%
March 12 New York Fed announces $1.5 trillion increase in new repo operations to address “highly unusual disruptions in Treasury financing markets.”
March 13 FISCAL: Trump declares “national emergency” over the Coronavirus pandemic. This unlocks up to $50B in relief funds
March 16 Fed unexpectedly cut its rates to 0.00% – 0.25% range
Fed announces purchase of $700B worth of Treasury bonds ($500B) and mortgage-backed securities ($200B)
Fed coordinates with BOC, BOE, BOJ, ECB, and SNB to lower rates on currency swaps to keep financial markets functioning
March 17 Fed announces additional $500B worth of repo operation
Fed creates Commercial Paper Funding Facility (CPFF), a corporation that can purchase commercial papers and short-term loans from businesses. Treasury has allotted $10B to cover potential losses
Fed revives Primary Dealer Credit Facility (PDCF), which will grant loans to 24 large institutions to help fund other banks
FISCAL: Treasury grants 90-day extension for filing taxes for individuals who owe $1M or less and corporations that owe less than $10M
March 18 Fed creates Money Market Mutual Fund Liquidity Facility (MMLF), which will make loans to financial institutions so they can buy from money market funds. Treasury has allotted another $10B worth of credit protection
FISCAL: Trump signs “Phase Two” package, which will fund free testing, paid sick and family leave, Medicaid and food security programs, and unemployment insurance benefits. The exact cost is unclear but the Joint Committee on Taxation estimates it could reach $100B
March 19 Fed establishes (temporary) dollar swap facility with counterparts in Australia, Brazil, Denmark, Korea, Mexico, Norway, New Zealand, Singapore, and Sweden
  March 30, 2020

That’s it for my list this week!

Will we see more stimulus come our way in the next couple of days or weeks? It’s possible.

Are these measures enough to help prop the economy in the months ahead? I guess we’ll find out.

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