Summary:
- We found that the government and the central bank acted rapidly to contain the spread of the virus to minimise any adverse economic consequences.
- Fiscal policy took the form of cash transfers and subsidies for households and firms. Monetary policy expanded liquidity through banking and microfinance institutions.
- A portion of liquidity was specifically allocated to the agricultural sector to ensure food security.
- The expansion in liquidity increased consumer prices, which increased the cost of living and could potentially increase poverty.
- Future fiscal policy should better target those households most impacted by the price increase.
