Bank of Canada ventures into uncharted territory to fight coronavirus fallout

Surprise interest-rate cuts by central banks have become so commonplace over the last few weeks that they no longer shock. The Bank of Canada slashed its benchmark interest rate by a half point on March 27, dropping the benchmark to 0.25 per cent, the lowest the central bank thinks it can go without disrupting the proper functioning of financial markets. At the start of the month, the policy rate was 1.75 per cent. Never has Canada’s central bank reduced borrowing costs so quickly, an acknowledgement of the severity of the…

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