Bank of Canada Cuts Rate Again
CBJ — Due to emergency concerns relating to the COVID-19 pandemic and tanking oil prices the Bank of Canada has cut interest rates by half a percentage point in a quick move to help shield the nation’s economy.
The central bank’s key overnight trendsetting rate now sits at a minuscule 0.75%.
In showing the seriousness of the event, Bank of Canada Governor was joined by Finance Minister Bill Morneau. Both are pledging further movements, if necessary.
Morneau also announced new support mechanisms for funding small- and medium-size businesses “at a time when they may have increased funding needs and credit conditions are tightening.”
“It is clear that the spread of the coronavirus is having serious consequences for Canadian families, and for Canada’s economy,” the Bank of Canada said in a statement. “In addition, lower prices for oil, even since our last scheduled rate decision on March 4, will weigh heavily on the economy, particularly in energy intensive regions.”
This is the first unscheduled emergency rate cut by the central bank since the 2008-2009 global financial crisis.