Bank Of Canada Cuts Interest Rate, May Cut Further Amid Economic Trouble

While the Coronavirus is a key source of economic damage, the illegal blockades have also contributed to Canada’s economic decline.

The benchmark interest rate has been cut by the Bank of Canada.

The rate was cut from 1.75% to 1.25%.

Rate changes are usually made in smaller amounts, with 25 basis point reductions or increases. The 50 basis point cut is a sign of the growing concern worldwide as the Coronavirus exacts an economic toll.

The bank has also made clear they could implement further cuts if the economic picture worsens:

“Governing council stands ready to adjust monetary policy further if required to support economic growth and keep inflation on target.”

Canada’s economy was already weakening before the Coronavirus, and was also hit by illegal blockades that will cause cascading damage for many months. Additionally, the weakness of the Trudeau government in handling the blockades, combined with the cancellation of the Teck Frontier Mine project, has sent a clear signal to investors that Canada isn’t a place that welcomes growth.

Amid such a negative economic environment, there’s only so much difference a rate cut can make.

Spencer Fernando

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Brian Dougan

Ho hum. Cut interest rate even further. Like that’s going to help. An out of control fire needs the fire department; not water pistols. This next-to-lifeless country has a true emergency, and it’s not the climate. Cut Trudeau out of the picture–That will jolt our enfeebled economy.

Gary major

All good according to trudeau/morneau!

Del

Cut loan rates so that businesses being damaged by yet more stupid Liberal decisions can borrow even more money just to try to stay alive and continue employing Canadians rather than admit defeat, throw away all their time and efforts and close their livelihood or declare bankruptcy.

Why do Trudeau and his controllers have such a deep vicious hatred for this country? This idiot is still hoping to find a space at the UN Security Council for his high-chair.