TOKYO (Reuters) – Group of Seven finance officials said on Tuesday they would take all possible steps to safeguard the global economy from the spreading coronavirus outbreak, with Bank of Japan Governor Haruhiko Kuroda promising a “good message”.
Crowds wearing protective masks, following the outbreak of the coronavirus, are seen at the Shinjuku station in Tokyo, Japan, March 3, 2020. REUTERS/Athit Perawongmetha
On a conference call, the group of rich nations’ finance ministers and central bank governors pledged actions including fiscal measures where appropriate to support the global economy, Japanese Finance Minister Taro Aso said.
He said the desirable policy response would vary from country to country.
The global policymakers’ united front offset anxiety over the coronavirus’ rapid spread in dozens of countries and aided a recovery in world stocks and oil prices.
“This is a tug of war between hope and fear. Central banks are giving hopes with their potential stimulus,” said Vasu Menon, senior investment strategist at OCBC Bank Wealth Management.
“The question is what they will do? Monetary policy is already very loose and interest rates are very low.”
Global stocks suffered a ro