The Bank of Canada is cutting its key interest rate target by half of a percentage point, dropping it to 1.25 per cent in response to the economic shock from the novel coronavirus outbreak.
The central bank says its target for the overnight rate is being trimmed because COVID-19, as the virus is named, “is a material negative shock” to the country’s economic outlook.
In January, the central bank said the global economy was showing signs of stabilizing, but governor Stephen Poloz opened the door to a possible interest rate cut if weakness in the economy was more persistent than expected.
OBJ360 (Sponsored)
Prince Edward Island wants you to experience a different kind of winter
Prince Edward Island (PEI) is a special place in the minds of visitors, known for its iconic landscapes, traditions and characters. Whether it’s the red soil and rolling hills, sandy
SnowBall: A Cool Winter’s Eve to Keep Ottawa Kids Warm This Winter
As Ottawa’s winter chill sets in, the warmth of community spirit takes centre stage at SnowBall: A Cool Winter’s Eve, The Snowsuit Fund’s sought-after gala happening at the Ottawa Art
In a statement today, the Bank of Canada says it’s becoming clear the Canadian economy won’t grow as much as previously forecasted for the first quarter of this year.
The bank points to disrupted supply chains and rattled business and consumer confidence, rail line blockades, job action by Ontario teachers and harsh winter weather.
The statement also says the central bank may further adjust its key rate if the situation calls for it.
