The Bank of Canada is cutting its key interest target by half a percentage point to 0.25 per cent in an unscheduled rate announcement.
In a statement on its website, the central bank says its decision to lower rates is aimed at cushioning the economic shocks from COVID-19 and a sharp drop in oil prices by easing the cost of borrowing.
It adds that providing credit in the economy for businesses that need it should help lay the foundation for the economy’s return to normalcy.
OBJ360 (Sponsored)
Ottawa Airport soars: Year-in-review highlights growth and innovation
The past year has been marked by significant developments across various sectors at the Ottawa International Airport (YOW). With a sharp rise in air service, terminal improvements, enhanced passenger amenities,
Ottawa’s housing inventory gets a boost with the Talisman Apartments
It’s not easy to find a welcoming, comfortable home within budget for many of Ottawa’s young professionals. But Sleepwell Property Management has entered the market with an optimally located, attractive
The interest rate cut takes the key rate to what the central bank referred to as “its effective lower bound” or the lowest level that rates can be set.
Bank governor Stephen Poloz is scheduled to discuss the rate cut during a teleconference with reporters this morning.
The central bank is also launching two new programs. One will aim to alleviate strains in short-term funding markets, while the other will see the central bank begin acquiring federal government securities in the secondary market with a minimum of $5 billion per week.
