The Bank of Japan would like to take after the massive sell-off of equities and crypto-assets in the past week, measures to stabilize the markets. The markets in Asia today is already better, as a little confidence returned.
More than 40 billion dollars, the crypto lost markets last week, as they crashed to a low of $ 240 billion market capitalization. In the past hours of about 7 billion dollars flowed back during the Asian Trading Session in the room.
The share markets are recovering slightly after the Bank of Japan has sent a calming message.
Bank of Japan boosts confidence
According to Reuters, BoJ Governor Haruhiko Kuroda said that the Central Bank will take the necessary steps to stabilize the by the Coronavirus outbreak shook the markets.
This announcement has renewed the Confidence that there will be a coordinated effort by the Central banks of the world to take action to support the global economy. Kuroda gave today Morning for an emergency Declaration, which States:
“The BOJ will carefully monitor the developments and strive to stabilize the markets and market operations, and the purchase of assets sufficient to provide liquidity.”
The Central Bank wants to connect its partners in the United States and China and the markets of liquidity in order to keep them above water. 500 billion Yen (4.62 billion Dollar) were offered in two-week funds via market operations.
Yoshimasa Maruyama, chief economist at SMBC Nikko Securities, adds:
“Kuroda’s statement focused on market operations and the purchase of assets, which meant that the BOJ could make your ETF purchases flexible in order to support the equity markets or to take measures to avoid a shortage in the money markets.”
Equities and crypto-Assets, such as Bitcoin are now traded in Asia is slightly higher as confidence in the battered markets has returned.
The FED cuts interest rates
Also, the US Central Bank to take more extreme measures to prevent an economic collapse. At the end of last week, the Chairman of the Federal Reserve’s Jerome Powell said that the Bank “will act as appropriate”, in order to stimulate economic activity, because supply chains are interrupted and travel restrictions were enforced.
The Economists of Goldman Sachs noted that this is a strong indication of a further interest rate reduction in connection with the FED meeting on the 17. and 18. March is. The Central Bank lowered the interest rates three times last year and started in September with a series of repurchase agreements, the financial system billions of dollars were fed.
The Chinese Central Bank has taken a similar monetary policy measures, has resulted in billions into the financial system to rescue the excessively lending banks.
This all sounds frighteningly familiar, and many believe that the measures the Central Bank can’t prevent the Inevitable – namely, a further global recession.