Way forward on coronavirus

Monetary accommodation may not help in India

Policymakers around the world are trying to contain the economic damage being caused by the spread of coronavirus. In an emergency move, the US Federal Reserve reduced interest rates by 50 basis points on Tuesday. The central banks of Malaysia and Australia also lowered interest rates, and a joint statement by finance ministers and central bank governors of G7 countries committed to use appropriate policy tools to contain the downside risk. Reserve Bank of India Governor Shaktikanta Das also said there was a strong reason for a coordinated policy action.
 
An emergency rate cut by the Fed is clearly