To Take On Coronavirus, B.O.E. Cut Rates. Europe’s Central Bank Has Fewer Options.
Christine Lagarde, the bank’s new president, is facing her first big crisis. She doesn’t have much room to maneuver.
The Bank of England launched an unexpectedly powerful attack on the economic effects of the coronavirus Wednesday. Now it’s the European Central Bank’s turn.
Christine Lagarde, the European bank’s new president, is under intense pressure to take action after the virus outbreak shut down Italy, the eurozone’s fourth-largest economy, and showed signs of spreading rapidly to Germany, France and other members of the bloc.
The E.C.B.’s Governing Council began meeting Wednesday and on Thursday is expected to announce anti-crisis measures that could look a lot like the ones announced by the Bank of England.
The British central bank said Wednesday it would cut its main interest rate, provide incentives for commercial banks to lend to small and medium-size businesses, and temporarily authorize banks to take more risk so that they can lend more.
(New York Times)