G7 To Issue Statement On Coronavirus Economic Impact

The Group of Seven Nations (G7) are preparing a statement on how they will respond to the economic impact of the ongoing coronavirus epidemic.

What Happened

The G7 is an international economic organization comprising seven nations: Canada, Germany, France, Italy, Japan, the United Kingdom, and the United States.

Reuters, citing sources, reported that the G7 statement on the response to the economic impact of the epidemic is expected Wednesday.

The international organization is not working on any specifics regarding government spending or synchronized rate cuts.

Why It Matters

Global markets were buoyant on Monday, with major indices clocking their best gains since 2018 due to expectations of central banks slashing interest rates.

Analysts are split on whether cutting rates could help as markets could view a rate cut as an indicator that the Federal Reserve views the coronavirus as a major economic risk.

According to Reuters, the language of the statement is still being worked out.

G-7 finance ministers and central bank governors are expected to hold a press conference on Tuesday morning to discuss the coronavirus epidemic and its economic impact as well as measures to deal with both.