Economic Overview
In many respects, it is too early to estimate the full economic and property impact of COVID-19.
A number of major economies have launched initial monetary and fiscal stimuli packages to boost economic growth. Initial responses show the US Fed cut interest rates to 0 – 0.25% and launched a $700bn stimulus programme. In Europe, several EU28 countries have shut borders and the European Central Bank (ECB) has responded by announcing a €750bn government bond acquisition programme to stimulate domestic demand. Similarly, the Bank of England (BoE) has responded by cutting interest rates from 0.25% to 0.1% and will subsequently increase government bond acquisitions. As a result, there has been continued volatility of European 10 year sovereign bond yields.
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