Bank of Canada Cuts Key Interest Rate to 0.25% in Unscheduled Move

OTTAWA—The Bank of Canada is cutting its key interest target by half a percentage point to 0.25 percent 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 economys return to normalcy.

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.

The central bank is also launching two new programs. One will aim to alleviate strains in short-term fundinRead More – Source