So, in addition to monetary policy easing, fiscal policy adjustments are being made or contemplated in a number of countries. The question is how much scope the relevant governments have for such actions, before encountering the potential limits to credibility of their own balance sheets.
As the pandemic was initially curbed and the orderly resumption of work and production started, the PBC increased the quotas of central bank lending and central bank discounts by RMB500 1/4  BIS central bankers' speeches  billion on February 26, requiring commercial banks to extend loans at rates not higher than the 1year loan prime rate (LPR, which was then 4.05 percent) plus 50 basis points.