Page INTEREST rates could be cut
in response to the coronavirus
outbreak.
Last night the US Federal Reserve
slashed its interest rates by half a
percentage point due to the ‘evolv-
ing risks to economic activity’.
It was the first emergency cut in the
US since the financial crisis more than
a decade ago.
Yesterday, Bank of England governor
Mark Carney indicated a rate cut
could be on the cards.
Giving evidence to the Treasury
committee for the final time before he
steps down as governor on March 15,
he revealed the Bank is considering
whether to cut official interest rates
from 0.75 per cent.
He told MPs that the Bank’s mone-
tary policy committee is ‘assessing the
economic impacts and considering the
policy implications’.
A cut would drive down the cost of
borrowing for millions of householdstweets sent by Donald Trump to the
US Fed’s chairman Jerome Powell urg-
ing him to take action.
Mr Trump – who days ago dismissed
fears of a US coronavirus outbreak as
‘fake news’ whipped up by the Demo-
crats and media – has been urging the
US Fed to cut rates further.
He tweeted: ‘It is finally time for the
Federal Reserve to LEAD. More eas-
ing and cutting!’
But instead of reassuring financial
markets, the Fed’s shock move
spooked investors on Wall Street and
the Dow Jones slumped 2.9 per cent.
A report from the Organisation for
Economic Co-operation and Develop-
ment has warned the outbreak could
halve global growth this year, tipping
many countries into recession.
Hopes of a co - ordinated global
response increased following an emer-
gency call between G7 finance minis-
ters and central bankers yesterday.
This helped lift markets in the UK and
across much of Europe.
The FTSE 100 of Britain’s biggest
companies rallied for the second con-
secutive day, rising almost 1 per cent.
Mr Carney yesterday also warned the
coronavirus could trigger a ‘large’ eco-
nomic shock but insisted the impact
will ‘ultimately be temporary’ and not
as devastating as the financial crisis.
He said: ‘We don’t want viable busi-
nesses to go out of business because
of the very necessary steps that need
to be taken to protect and serve the
British public over the course of the
near future.’
The outgoing governor has been in
regular contact with Chancellor Rishi
Sunak and Treasury officials are
understood to be preparing to set
aside billions of pounds in next week’s
Budget to help firms and workers cope
with the impact of a major epidemic.Daily Mail, Wednesday, March 4, 2020 QQQcorona
latest
US slashes
rates... will
UK follow
their lead?
paris
‘protect and
serve the public’By James salmon
Associate City Editorlondon
Marathon could
be cancelled as
UK cases surge
postpone film,
say Bond fans
Student punched
in ‘racist’ attack
MATT Hancock yesterday said the Lon-
don Marathon might be cancelled under
plans to halt the spread of the virus.
But the Health Secretary acknowl-
edged it was ‘far too early’ to make a
final decision, even though the race is set
to take place on April 26.
While Mr Hancock said the Govern-
ment has no plans to cancel mass events,
the move could be considered if the virus
continues to spread across the country.
It comes as many events in Asia and
Europe have been abandoned or down-
sized due to the outbreak.
More than 40,000 people from around
the world run in the 26.2mile marathon,
while around 750,000 spectators line the
capital’s streets to cheer them on.
When asked about the possible cancel-
lation, Mr Hancock said: ‘We do not rec-
ommend cancelling mass events and
schools should not be closing unless there
is a positive case. We want to minimise
disruption, subject to doing the things
we need to do to keep people safe.’JAMES Bond fans have waited almost
five years to see Daniel Craig, pictured,
play 007 for the final time.
But they are ready to wait even longer,
as fans have asked the
studios behind No Time
to Die to push back the
April 2 release date.
An open letter on a
fan site read: ‘It’s just a
movie. The health of
fans around the world
is more important.’
The world premiere is still scheduled
to take place at London’s Royal Albert
Hall on March 31.A STUDENT from Singapore was
assaulted by thugs shouting, ‘I don’t
want your coronavirus in my country.’
Jonathan Mok, 23, was ambushed on
London’s Oxford Street last Monday.
He said his nose ‘exploded’ with blood
as the group punched him, resulting in
possible facial fractures.
Mr Mok, who has an English father and
Chinese mother, said: ‘Racists constantly
find excuses to expound their hatred and
in this current backdrop of the coronavi-
rus, they’ve found yet another excuse.’
Scotland Yard are investigating.Mask smuggle
Brit arrested
A BRITISH lorry driver was arrested in
Morocco after trying to smuggle
100,000 face masks out of the country.
He was reportedly planning on selling
the masks for £26 each in the UK.
The unnamed driver was held at a
cargo port near Tangier, according to
local reports. The arrest was said to
have been made yesterday and he is
believed to be in police custody.
And investigations are under way at
several hospitals across Spain after
thousands of masks were stolen due to
shortages caused by the outbreak.
Sold out: Empty shelves in stores across the UK as buyers stockpile hygiene and food products
and businesses, giving them breathing
space if the economy slows down.
Asked by MPs if a cut was imminent,
Mr Carney indicated the decision
would not be made before March 26.
His appearance came just hours
b e f o r e t h e U S Fe d e r a l R e s e r v e
announced it was cutting rates by half
a percentage point to a target range of
between 1 per cent and 1.25 per cent.
It is its first emergency rate cut since
December 2008 in the midst of the
financial crisis and is also the biggest
cut since the Great Recession.
In a statement, it said: ‘The funda-
mentals of the US economy remain
strong. However the coronavirus poses
evolving risks to economic activity.’
The move follows a series of angry