Fed’s emergency cut doesn’t halt the carnage

Wednesday 4th March 2020

The US Fed dropped interest rates by 50 basis points in an emergency cut today, well ahead of their next scheduled meeting. It followed a phone-hook up with G7 central banks. Does this mean we can safely assume all other banks will follow their lead, starting with the Bank of Canada tonight? Phil Dobbie puts the question to NAB’s Rodrigo Catril. And will the plan work, given that equities continue to fall and the US dollar has given way to safe havens again today? There’s been a massive rush to government bonds. They also discuss today’s Aussie GDP numbers, which will tell us how the economy was doing before the virus came along.

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