Reserve Bank of India Governor Shaktikanta Das has said that the coronavirus outbreak will have limited impact on India, but global growth will be hit.

“It is definitely an issue which needs to be closely monitored by every policymaker whether in India or any other country. Every policymaker, every monetary authority needs to keep a very close watch. So coronavirus issue needs to be closely watched,” he said.

“Most of the large pharma companies, according to information that we have, always keep stock for three-four months. Therefore, they should be able to manage and also those provinces from where these pharma intermediates are sourced have not been impacted by the virus outbreak. Therefore, there is an expectation that the supply of pharma raw materials will be maintained,” he said.

The RBI governor said that the coronavirus outbreak appears to be larger than SARS and this time China’s share in world GDP and world trade is much higher. “So, the coronavirus will definitely have an impact on the global GDP and global trade,” he said.

The outbreak is expected to shave up to 0.2 percentage points off Japan’s economic growth this year as it hits exports, factory output and tourism, a Reuters poll of analysts showed last week.

The euro bounced briefly above $1.08 but sank below the mark to trade flat as the dollar continued its rally. The single currency had earlier fallen to a three-year low after a survey showed weakening confidence in Germany. One-month euro-dollar implied volatility rose to its highest in six weeks.

Italy’s Economy Minister Roberto Gualtieri said that the country’s 2020 growth forecast may be revised down if there is a significant impact from the coronavirus outbreak.

“The 0.6% could be revised down if the coronavirus will have a significant impact and if there is a stronger than expected drag effect of the 2019 GDP decline over the current year,” Gualtieri said on Wednesday in a interview with Radio Capital.