BIS Bulletin: Central banks’ response to Covid-19 in advanced economies

The Bank for International Settlement (BIS) published on June 5 its 21th Bulletin, presenting Central banks’ response to COVID-19 pandemics in advanced economies. 

While the outbreak of Covid-19 was a shock of unprecedented size and nature, lockdowns and containment measures on a global scale led to a generalised sudden stop in economic activity. Central banks responded promptly and forcefully, consistent with their mandates, to preserve smooth market functioning and an effective transmission of monetary policy. This Bulletin reviews the response of the central banks of the United States, the euro area, Japan, the United Kingdom and Canada.

The article provides further insight on the measures taken, lessons learnt and the monetary and fiscal policy implications.