The Bank of Canada is keeping its trendsetting interest rate steady at 0.25 per cent, as widely expected by economists. The decision came after the central bank slashed its key interest rate three times since the beginning of March, including two unscheduled cuts, to help counter the economic impact of the novel coronavirus pandemic.
The central bank said the downturn tied to COVID-19 will be the worst on record. Preliminary data from Statistics Canada today showed economic activity collapsed in March as it dropped a record nine per cent.
The pandemic has forced companies to close and workers to stay at home as much as possible in a massive public health effort to slow the spread of COVID-19, leading to steep and sudden drops in business