Close X
Sunday, November 24, 2024
ADVT 
National

The Bank of Canada announced that it is holding its interest rate target at 0.25 per cent

Darpan News Desk The Canadian Press, 15 Apr, 2020 06:09 PM
  • The Bank of Canada announced that it is holding its interest rate target at 0.25 per cent

The Bank of Canada is warning that the downturn tied to COVID-19 will be the worst on record and that the economic recovery will depend on the effectiveness of current measures to bring the pandemic under control. The bank announced that it is keeping its key interest rate target on hold at 0.25 per cent, saying that it is effectively as low as it can go to combat the economic impacts of COVID-19.

If conditions improve quickly, the economic shock is likely to be "abrupt and deep, but relatively short-lived" and followed by a strong rebound for most, but not all, sectors of the economy. A more severe scenario would likely see a "significant number" of businesses closing for good and longer spells of unemployment as workers look for new jobs.

A longer downturn would also mean households, businesses and governments could have higher debt by the time the recovery takes hold. No matter the scenario, all the possibilities suggest "the near-term downturn will be the sharpest on record," the report reads.

"The outlook is highly conditional on how long the containment measures remain in place, and how households and firms adapt," governor Stephen Poloz said in his opening remarks during a morning teleconference.

He added that "substantial monetary stimulus needed to be in place to lay the foundation for the post-containment economic recovery."

The monetary policy report is the last one Poloz is to be a part of, with his tenure at the head of the central bank scheduled to come to a close on June 2.

He was involved in the first monetary policy report published 25 years ago. Poloz said that he wished the circumstances for his last were "more favourable."

MORE National ARTICLES

Astronauts On Coping With Covid-19: Plenty Of Routine, Keep Sight Of Big Picture

MONTREAL - In David Saint-Jacques' line of work, physical distancing comes with the job.    

Astronauts On Coping With Covid-19: Plenty Of Routine, Keep Sight Of Big Picture

Feds Seeking Lower Credit-card Interest Rates Over COVID-19

Feds Seeking Lower Credit-card Interest Rates Over COVID-19
OTTAWA - The federal government is asking banks and credit-card companies to lower interest rates on Canadians struggling financially because of the COVID-19 pandemic.    

Feds Seeking Lower Credit-card Interest Rates Over COVID-19

Top Court To Hear Fight Over Premier Doug Ford's Deep Cuts To Toronto Council

Top Court To Hear Fight Over Premier Doug Ford's Deep Cuts To Toronto Council
TORONTO - Canada's highest court agreed on Thursday to hear Toronto's challenge to a unilateral decision by Ontario Premier Doug Ford that slashed the size of city council midway through the last municipal election.    

Top Court To Hear Fight Over Premier Doug Ford's Deep Cuts To Toronto Council

What You Need To Know About The Quarantine Act As Isolation Becomes Mandatory For Returning Travellers

Canada is making unprecedented use of the federal Quarantine Act in a bid to curb the spread of the COVID-19 pandemic. The order, which went into effect early Wednesday

What You Need To Know About The Quarantine Act As Isolation Becomes Mandatory For Returning Travellers

Feds Plan $30M Ad Buy To Help Media Deal With Covid-19 Fallout

OTTAWA - The federal government announced Wednesday that it is planning a $30-million COVID-19 awareness advertising campaign and moving closer to implementing long-promised tax credits for newspapers as it seeks to support Canada's struggling media industry during the pandemic.

Feds Plan $30M Ad Buy To Help Media Deal With Covid-19 Fallout

Next Phase Of Conservative Party Leadership Race Set To Get Underway

OTTAWA - The Conservative party is gearing up for the next phase of its leadership race, a contest taking place in unprecedented times.    

Next Phase Of Conservative Party Leadership Race Set To Get Underway