The Bank of Canada has made an emergency rate cut, cutting the central bank’s benchmark interest rate by 50 basis points to 0.75 per cent.
The central bank already cut its rate to 1.25 per cent at a previously scheduled meeting on March 4 to help counteract the impact of the coronavirus.
But Friday’s unexpected and unscheduled move shows just how seriously policy-makers are taking the economic threat that COVID-19 presents.
“This unscheduled rate decision is a proactive measure taken in light of the negative shocks to Canada’s economy arising from the COVID-19 pandemic and the recent sharp drop in oil prices,” the bank said.
More to come.