The Bank of Canada cut its key interest rate by 50 basis points on Friday March 27. This is the third 50-basis-point cut this month as the bank does what it can to ease the cost of borrowing during the ongoing COVID-19 pandemic.
The unscheduled rate decision brings the bank’s policy interest rate down to 0.25 per cent. At 0.75 per cent, it was the highest such rate among the central banks of G7 countries.
On Friday, Canada’s central bank also announced two new programs to bring greater liquidity to Canadian markets: the Commercial Paper Purchase Program (CPPP), and a quantitative easing program.
Under the latter, the bank will purchase a minimum of $5 billion in Government of Canada securities per week, starting April 1. The program will continue until Canada’s economic recovery is “well underway.”
Over the next 12 months, the CPPP will see the bank undertake primary and secondary market purchases of commercial paper issued by Canadian firms, municipalities and provincial agencies that have an outstanding commercial paper program. Poloz said the program will “help to restore a key source of short-term funding for businesses.”
“The intent of our decision today is two-fold: to immediately support the financial system so it keeps on providing credit, and, over the longer term, to lay the foundation for the economy’s return to normalcy,” Bank of Canada governor Stephen Poloz said in an opening statement to media.
Nearly two weeks ago, the U.S. Federal Reserve slashed its overnight rate by one percentage point to a range between zero per cent and 0.25 per cent.
Steve is a award winning Realtor in Victoria BC, with his listings selling faster and for top dollar! Growing up in Victoria, BC and has always been active in his community. Steve is a Victoria Cougar....
Should you require assistance in navigating our website or searching for real estate,
please contact our offices at
1321 Blanshard Street
Victoria, BC V8Z 1J9
Real Estate Agent
Data provided by: Victoria Real Estate Board 3035 Nanaimo Street, Victoria, British Columbia V8T 4W2
All information displayed is believed to be accurate but is not guaranteed and should be independently verified. No warranties or representations are made of any kind.
The trademarks REALTOR®, REALTORS® and the REALTOR® logo are controlled by The Canadian Real Estate Association (CREA) and identify real estate professionals who are members of CREA. The trademarks MLS®, Multiple Listing
Service® and the associated logos are owned by CREA and identify the quality of services provided by real estate professionals who are members of CREA. Used under license.
By setting up an account you agree to receive updates on listings by these means.