G7 is closely monitoring the spread of the coronavirus disease and its impact on financial markets and economic conditions, the group’s finance ministers and central bank governors said in a statement on Tuesday following their emergency meeting.
“We reaffirm our commitment to use all appropriate tools to achieve strong, sustainable growth and safeguard downside risks,” the statement read.
The group refrained from mentioning a decision on coordinated rate cuts but voiced their commitment to take actions, including fiscal measures where appropriate.
“G7 central banks will continue to fulfil their mandates, thus supporting price stability and economic growth while maintaining the resilience of the financial system,” the group said.
Market reaction
With the initial market reaction, the S&P 500 futures erased the early gains and slumped into the negative territory to reflect the disappointment. On the other hand, the US Dollar Index stays relatively resilient near the 97.50 handle.
