Bank of Canada Cuts Key Interest Rate to 0.25%

The Bank of Canada has lowered interest rates for a third time in a matter of weeks, and announced what appears to be a large scale asset purchase program to help shield the nation’s economy from coronavirus fallout.

The Ottawa-based central bank lowered its policy rate Friday by another half a percentage point to 0.25 per cent, adding in a statement that the unscheduled rate decision brings the rate down to its effective lower bound. The Bank of Canada also announced plans a new commercial paper purchase program as well as a minimum of $5 billion a week in government securities.

How this will impact interest rates with Lenders will play out in the coming days.

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