Effects of COVID-19 interventions will be felt over weeks and months.
Despite yesterday’s interventions by Chancellor of the Exchequer Rishi Sunak the markets are being slow to respond, Dr Walter Boettcher, head of research and economics at Colliers International, has observed.
He said: “Financial markets are not responding as readily to various stimulus measures as might be expected. This suggests that sentiment is being driven by factors that are not readily addressed by conventional policy tools. Monetary policy in particular has looked relatively ineffective, so far. Fiscal stimulus will help, but the effects of this will be felt over the next few months, rather than in the next few days. As long as panic buying continues, then it is probably safe to assume that investors will remain spooked.”