- The Federal Reserve of the United States of America has announced a reduction in interest rates
- It disclosed that the rates are now between 0% to 0.25%
- It has launched a $700 billion quantitative easing (QE) programme to protect the economy
The Federal Reserve of the United States of America has announced a $700 billion quantitative easing (QE) programme.
This comes after its decision to reduce the interest rate to zero in the wake of the coronavirus pandemic.
The QE programme is designed to help with the purchasing of assets such as the Treasury and mortgage-backed securities.
According to the Federal Reserve, the outbreak of the coronavirus has disrupted economic activities in several countries around the world.
As per a report by CNBC, it added that the intended measures are to help protect the economy from the effects of the coronavirus.
The interest rate would range between 0% to 0.25%, which a reduction from the previous 1% to 1.25%.
The Federal Reserve has also reduced the rate of emergency lending at the discounted window for banks by 125 basis points to 0.25%.
It again increased the term of loans to 90 days but none of these measures were enough to stop a negative response from the market.
Meanwhile, Briefly.co.za earlier reported that following President Cyril Ramaphosa's declaration of a national disaster due to the coronavirus pandemic, the nation's ministers have filled South Africa in on their plans.
From health to transport, leadership provided details on the measures implemented by the government.
Enjoyed reading our story? Download BRIEFLY's news app on Google Play now and stay up-to-date with major South African news!