After slicing it 3 times in only a month, the Financial institution of Canada saved its benchmark rate of interest regular at 0.25 per cent on Wednesday.
The central financial institution stated in a launch that “the COVID-19 pandemic [has] prompted a sudden and deep contraction in financial exercise and employment,” and expects the outlook for restoration to be unsure.
The financial institution added that it expects financial exercise within the April-to-June interval to be between 15 and 30 per cent decrease than it was on the finish of 2019.
The financial institution, led by governor Stephen Poloz, cuts its rate of interest when it needs to stimulate the financial system and raises it when it needs to decelerate inflation. Poloz could have extra to say concerning the financial institution’s line of considering at a press convention beginning at 10:30 a.m. ET on Wednesday, which can by performed dwell on this story.
Wednesday’s coverage resolution is Poloz’s final earlier than he’s scheduled to retire later this 12 months.
Extra to come back