What will the outbreak really mean for your money?

Interest rates

Markets are pricing in a 50-50 chance of a rate cut from the Bank of England when it is next due to make a decision on March 26, but it could make an emergency move sooner than the scheduled meeting.

Paul Dales, chief UK economist at Capital Economics, said even if financial markets only fear a wider outbreak, the monetary policy committee may act.

The sentiment is shared across the pond. Jerome Powell, the chairman of the US Federal Reserve, pledged to “use our tools” to support the economy, indicating it could slash rates.

The intention would be to stimulate spending in the economy, but a cut would hit your savings.

House prices

Estate agents had been rubbing their hands after recent Nationwide data showed house prices grew at their fastest pace since July 2018 in February, boosted by Boris Johnson’s decisive election victory.

However, Robert Gardner, Nationwide’s chief economist, warned that if coronavirus accelerates its spread in the UK, homehunters will hold back.

Marc von Grundherr, director of estate agent Benham and Reeves, was less gloomy. “Foreign investors at the highest level might be pausing to take stock,” he said. “But it’s probably not one that will be felt by the average UK homebuyer or seller.”

Investments and pensions

After more than £200billion was wiped off the value of the FTSE 100 this week, anyone with a stake in the stock market ended the week poorer than they started.

When share prices are low, beware cashing in parts of your pension.

But some shares have rocketed since the outbreak, such as Novacyt, a British-listed biotech company that has developed a test for the virus.

Exchange traded funds linked to gold, considered a safe haven asset, have also climbed.

Jobs

While being stuck on a balcony somewhere hot might sound appealing, it’s best not to travel to outbreak areas if you can’t afford to be quarantined without sick pay.

It’s only best practice for an employer to grant sick leave to a worker without symptoms.

Nor are they obliged to pay you if your child’s school is closed and you need to stay at home.

However, if your employer asks you to stay home, even if you’re not ill – such as if you recently returned from China – it’s their duty to pay you. Lizzy Burden