G7 postpones coordinated action against coronavirus

Finance ministers and central bank chiefs from the G7 countries have agreed to adopt several stimulus packages that are aimed at addressing the recent outbreak of the coronavirus, which has sparked fears of a major economic disruption.
However, officials from the G7, the seven wealthiest countries in the world – Canada, France, Germany, Italy, Japan, the UK, and the US – postponed their plans to coordinate their efforts to help lessen the economic effects of the outbreak.
“Alongside strengthening efforts to expand health services G7 finance ministers are ready to take actions, including fiscal measures where appropriate, to aid in the response to the virus and support the economy during this phase”, the group said, adding that they are closely monitoring the virus outbreak.
The G7 also said that their central banks would continue to fulfil their mandates of price stability while maintaining the resilience of the global financial system. Analysts said that a coordinated interest rate cut that involves European central banks, i.e. both the European Central Bank (ECB) and the Bank of England, is likely.
ECB chief Christine Lagarde said the bank is ready to take appropriate and targeted measures. The Governor of the Bank of England, Mark Carney, said that “we will come to quick conclusions on the appropriate stance of policy”. Only the US Federal Reserve has, however, announced that it would cut interest rates by half a point.
European airlines have warned that they are facing the prospect of potentially irreversible economic damage to the industry as a result of the spread of the virus. They have called for a relaxation of airport regulations under which airlines can lose lucrative landing and take-off slots if they cancel flights for a prolonged period.