The low interest rates

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Of course, situations like this do not happen without a reason. It is important to understand that many external factors end up affecting the economy. In this case, the emergence and increase in the coronavirus has created an air of uncertainty regarding economic movements. In addition, one of the ways to prevent the virus is for people to not be able to leave their homes, which harms businesses and companies.

In this scenario, the American central bank , FED (Federal Reserve), announced cambodia phone number list to try to contain the decline in the economy. There was a reduction in the interest rate, which remained between 0% and 0.25% , being the second cut in almost two weeks.

In addition, the bank also announced the purchase of US$500 billion in government bonds and US$200 billion in mortgage certificates. This was not well received by the market, which became even more unstable due to the lack of knowledge about the real impacts of the pandemic.

Other powers, such as China and Europe, also had problems with their markets. In the former, the country's production fell by 13.5% in the first months of 2020. This was the first time in 30 years that Chinese industry had declined in this way. It is worth remembering that China was the first country to report cases of the coronavirus.

In Europe, stock indexes suffered sharp declines, reaching 2012 levels . The countries most affected are Italy, France and Spain, precisely the places with the most deaths from the pandemic.