News about policymaking in the world’s major central banks with a focus on the People’s Bank of China, the Federal Reserve, the European Central Bank, the Bank of England, the Bank of Japan and the Re

serve Bank of Australia.

Coronavirus creates risk of a Great Depression, China’s central bank says
China’s central bank has warned the international community to be alert to the risk of a “Great Depression” in the wake of the Covid-19 outbreak, although it said the chances of this occurring was low. “The possibility of a ‘Great Depression’ cannot be ruled out if the epidemic continues to run out of control and the deterioration of the real economy is compounded by an eruption of financial risks,” Zhu Jun, the director of the international department of the People’s Bank of China, said last week, according to local media. The coronavirus pandemic has forced policymakers to balance the need to protect public health and the economic cost of shutting almost all face-to-face human activity.