Europe began a new campaign to shield economies from the coronavirus as the region’s two main central banks either delivered or signaled action to avoid a 2008-style crisis, and German Chancellor Angela Merkel promised to do “whatever is necessary”.
Last year, monetary policy returned to an easing mode, in response to a marked slowdown in global growth, and the IMF estimates that the monetary easing added 0.5% to world growth in 2019.
Immediately after the crushing loss of over 1,000 local election seats by the Conservative Party last week, sterling strengthened to its best in over 12 months pushing the euro down to and taking some of the pressure off hard pushed Irish exporters to the market.
Britain is expected to choose a new central bank chief this year to succeed Canadian Mark Carney, who will step down in June 2019, three months after the country’s scheduled exit from the EU. No one has yet thrown their hat into the ring to succeed him, but there are numerous contenders.
Britain’s economy grew at its slowest pace since 2013 in the 12 months after last year’s Brexit vote, data showed yesterday, painting a subdued picture as the Bank of England prepares to raise interest rates for the first time in a decade.