BoC cuts interest rate again by 50 bps to provide “a bridge across the trouble”

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BoC cuts interest rate again by 50 bps to provide “a bridge across the trouble”

On Friday, the 13th of March 2020, in order to cushion up the Canadian economy from a gruelling outbreak of Covid-19 which has been sending the global economy at the edge of a cliff, BoC (Bank of Canada) had proffered an emergency interest rate cut of 50 basis percentage point what the Canadian Central Bank claimed could provide a “bridge across the trouble.

” In point of fact, as Canadian financial authorities had been seeking to weather a withering wave of a fast-spreading coronavirus pandemic which would highly likely to push the global economy in to a recession, the Canadian Central Bank had flabbergasted the analysts all over the world by slashing interest rate by 50 bps to 0.75 per cent on Friday (March 13th), less than nine days after it had taken an identical measure on March 4th.

However, Bank of Canada’s first emergency rate-cut since the ages of financial crises on 2008 came forth on Friday (March 13th) shortly after the Canadian Government of PM Justin Trudeau, whose wife had also been infected with the coronavirus, had stepped up credit support for the Canadian businesses nearly ten-fold of an earlier C$1 billion.

Meanwhile, late on Friday (March 13th), in an unscheduled press briefing, adding that the BoC would slash rate again if required, BoC Governor Stephen Poloz said in the statement, “We believe all this will be temporary but can be prolonged if confidence is unduly damaged. And so, these actions are meant to buttress that confidence and give us a bridge across the trouble. ”