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Central Bank 'closely monitoring' coronavirus developments a day after US Federal Reserve slashed interest rates

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The Central Bank of Ireland

The Central Bank of Ireland

The Central Bank of Ireland

A day after the US Federal Reserve slashed interest rates, the Central Bank of Ireland moved to reassure markets here that it was ready to take action to offset the impact of coronavirus on the economy.

We are closely monitoring developments related to COVID-19 and continue to assess their impact on the economy and the financial system, as more information becomes available,” the Bank said today.

It said it expected regulated firms to have appropriate contingency plans in place to be able to deal with major operational events and that it was working with the financial sector to ensure that firms are responding effectively to the outbreak.

“We stand ready to work with our counterparts in the European Central Bank and across the wider central banking community to take appropriate and targeted measures, as necessary and commensurate with the underlying risks,” the Central Bank of Ireland.

The Fed move on Tuesday marked a significant escalation by the central bank to ensure that weaker demand for goods and services as a result of the spread of the virus did not start to hit the balance sheets of firms.

The ECB, which sets interest rates for the whole Eurozone, said it was monitoring the situation, although it has far less room to stimulate the economy than the Fed as interest rates here are deeply negative already at minus 0.5pc.

Online Editors