“Monetary policy does not have much effect on coronavirus”

However, investors and economists do not think that monetary policy can have much impact on saving the global economy, especially in a period when large central banks such as the European Central Bank (ECB) and the Central Bank of Japan (BoJ) are already drawing interest rates to the negative zone.

JPMorgan Private Banking Asia investment strategy unit manager Alex Wolf said in a program he attended on CNBC Wednesday: “The truth is that we are entering this crisis globally with much less ammunition. Not only Europe or Japan, even China has fewer ammunition for the incentive package than last time. ” said.

The new type of coronavirus, also called COVID-19, is spreading rapidly on a global scale. Due to concerns over its economic impact, the Fed lowered 50 bp interest on Tuesday.

Interest cuts, which make borrowing costs cheaper, can support the economy by encouraging businesses and consumers to buy and spend loans.

Australia and Malaysia took the same step before the Fed’s surprise rate cut. Analysts are waiting for more banks to go on sale. There will be policy meetings of AMB, BoJ and the Bank of England (BoE) in the coming weeks.

“Given the high uncertainty about the possible consequences of the virus outbreak,” Fed’s recent interest rate cut was early, said investment giant Vanguard chief economist Roger Aliaga-Diaz. Aliaga-Diaz said, “Based on the economic and virus-related data available today, we think this is a high-risk step. The Fed may find itself in a difficult position if conditions worsen. He may find himself forced to act in the coming weeks. ” said.

On the other hand, there are no people like the Fidelity Investments global macro director Jurrien Timmer who thinks the Fed has taken the right step.

I cnbc.co