The Living Markets

SNB in a tight spot after Fed’s coronavirus cut

The Swiss National Bank will probably participate in any concerted action by central banks to shore up the global economy in response to the coronavirus epidemic, the former deputy governor of Ireland’s central bank said Tuesday.

“My suspicion is, if there is coordinated action, the SNB will play along even though they may prefer not to do anything right now,” Stefan Gerlach, chief economist of EFG Bank, told CNNMoney Switzerland.

“It is really key for such an open economy as the Swiss economy to be fully engaged in international monetary policy developments,” he said.

The U.S. Federal Reserve cut rates by half a percentage point Tuesday, saying the coronavirus “poses evolving risks to economic activity.” Markets expect other central banks to follow suit.

On Monday, the Organization for Economic Cooperation and Development said that the virus would take a heavy toll on global growth if it spreads widely outside of China.

Earlier on Tuesday, finance ministers and central bankers fr…

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