COVID-19 is the gravest health threat to emerge around the globe in the last hundred years.
Not only is this virus a health crisis, but it has also morphed into an acute financial crisis as entire industries are impacted and economies are hit badly.
The difference now is that countries are equipped with central banks, which can act to prop a country’s economy up using both monetary and fiscal stimuli.
During this crisis, numerous countries have taken the drastic step of cutting interest rates to boost economic growth.
Colombia’s central rate has cut rates seven times in a row to a record low of 1.75%, while Mexico has recently cut its rates for the eleventh consecutive time to 4.25%.
In the US, the Federal Reserve has slashed rates to rock-bottom levels and maintains that they will stay “lower for longer” until inflation hits 2% and a wider economic recovery is seen....