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China’s policymakers have called for a cautious monetary policy response to the coronavirus outbreak. 

The officials told MNI news that any easing would be targeted at affected sectors and would avoid reversing China’scurrent overall neutral stance. 

The People’s Bank of China on Monday lowered the rate on 200 billion yuan worth of one-year medium-term lending facility (MLF) loans to financial institutions by 10 basis points to 3.15% from 3.25% previously, according to Reuters. 

The virus has already killed more than 1,700 people and infected more than 70,000 and is showing no signs of peaking. China’s economy, which was showing signs of life at the end of 2019, is now widely expected to witness a sharp slowdown in the first quarter.