Central banks around the world, including the U.S. Federal Reserve, have lowered interest rates to support their respective economies amid a rapidly spreading coronavirus — and more are expected to follow suit.
But investors and economists said there’s not much monetary policy can do to save the global economy, especially when some major central banks — such as the European Central Bank and Bank of Japan — have already cut interest rates into the negative territory.
“The fact is, we’re coming into this crisis with far less ammunition globally. It’s not just Europe or Japan, even in China they have much less ammunition than the last time they had to launch a stimulus package,” Alex Wolf, J.P. Morgan Private Bank’s head of investment strategy in Asia, told CNBC’s “Squawk Box Asia” on Wednesday.
Wolf’s comment came as the new coronavirus — also called COVID-19 — is quickly spreading globally and beyond its epicenter in China. Concerns over the economic hit from the virus…