Economics
Bank of Canada Cuts Rates 50 Basis Points, Ready for More
- Coronavirus represents ‘material negative shock’ to outlook
- Officials will adjust monetary policy further if necessary
Stephen Poloz.
Photographer: Justin Tang/BloombergThis article is for subscribers only.
The Bank of Canada cut half a percentage point from its benchmark interest rate Wednesday, easing monetary policy for the first time in more than four years as it followed the Federal Reserve in trying to protect its economy from the coronavirus.
The central bank lowered its overnight rate to 1.25% from 1.75% and said the spread of the coronavirus represents a “material negative shock” to the Canadian and global outlooks. Officials said they’ll act again to reduce rates if necessary.