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

We Did It Right:' Covid-19 Scare At Oilsands Work Camp Tests Businesses' Plans

CALGARY - A COVID-19 scare at an oilsands staff lodge north of Fort McMurray, Alta., last week tested the pandemic preparedness of one of the many businesses that house, feed and transport workers at resource extraction sites.

We Did It Right:' Covid-19 Scare At Oilsands Work Camp Tests Businesses' Plans

Tables Offer Free Food, Essentials For Those In Need

VANCOUVER - While panicked shoppers have been buying stores out of toilet paper and flour stocks, two tables have appeared on streets in the Vancouver area stacked with essential items and a sign that says "free."

Tables Offer Free Food, Essentials For Those In Need

Mandatory Quarantines To Apply To Returning Travellers, Freeland Says

OTTAWA - The federal government will start enforcing 14-day quarantines on travellers returning to Canada to try to limit the spread of COVID-19.    

Mandatory Quarantines To Apply To Returning Travellers, Freeland Says

Canada To Help World's Poor Cope With Covid-19, Amid UN Appeal: Aid Minister

OTTAWA - Canada will spend millions to help the world's most desperate people fight COVID-19 because it is in the country's long-term security interest as well as being the right thing to do, says International Development Minister Karina Gould.

Canada To Help World's Poor Cope With Covid-19, Amid UN Appeal: Aid Minister

Schlatter Handed Life Sentence With No Parole For 25 Years In Richey's Murder

TORONTO - A Toronto man who sexually assaulted and strangled a young woman hours after they met has been sentenced to life in prison with no chance of parole for 25 years.    

Schlatter Handed Life Sentence With No Parole For 25 Years In Richey's Murder

Words To Remember: Canadian Newsmakers Have Their Say On COVID-19

A look at some of the top quotes from across Canada on Tuesday in relation to COVID-19:    

Words To Remember: Canadian Newsmakers Have Their Say On COVID-19