Canada Cuts Interest Rate to 0.25% in Emergency Move

Discussion in 'Economics' started by The Humble Bunch, Mar 27, 2020.

  1. The Bank of Canada slashed its benchmark interest rate by 50bps to 0.25 percent in an emergency meeting on March 27th 2020. The move follows a similar margin cut on March 13th and brings borrowing costs to its effective lower bound aiming to support the economy and the financial system amid the coronavirus pandemic. The Committee also launched a Commercial Paper Purchase Program to help to restore a key source of short-term funding for businesses and said that will begin acquiring government securities in the secondary market until the economy recovers. Policymakers added that they are closely monitoring economic and financial conditions, in coordination with other G7 central banks and fiscal authorities and will take further action if necessary.
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