World Economy

G-7 draft statement on coronavirus response reportedly does not detail fiscal, monetary steps

Key Points
  • Global financial markets rallied sharply on Monday as central banks from Japan, Britain and France followed the U.S. Federal Reserve in saying they stood ready to support the global economy.
  • The G-7 countries will pledge to work together to mitigate the damage to their economies from the fast-spreading epidemic, a source told Reuters.
Flags of G7 member nations are displayed at an entrance of the Peace Memorial Park for victims of the 1945 atomic bombing in Hiroshima on April 9, 2016.
Kazuhiro Nogi | AFP | Getty Images

The Group of Seven industrial powers are crafting a statement for their finance leaders to issue on countering the impact of the coronavirus, but for now it does not specifically call for new government spending or coordinated interest rate cuts by central banks, a G-7 official with direct knowledge of the deliberations told Reuters on Tuesday.

Global financial markets rallied sharply on Monday as central banks from Japan, Britain and France followed the U.S. Federal Reserve in saying they stood ready to support the global economy and the French finance minister promised "concerted action."

In the statement, expected on Tuesday or Wednesday, the G-7 countries will pledge to work together to mitigate the damage to their economies from the fast-spreading epidemic, the source said on condition of anonymity due to the sensitivity of the matter.

The language of the statement is subject to change as it is still under discussion, the source said.

The United States — this year's G-7 chair — said the group's finance ministers and central bank governors will hold a conference call on Tuesday morning to discuss measures to deal with the epidemic and its economic impact.