The Bank of Canada has made a second unscheduled cut to its benchmark interest rate, lowering it to 0.25 per cent amid the COVID-19 crisis.
The central bank made the announcement in a news release on Friday morning.
The overnight lending rate is what the bank charges for short-term loans between retail banks, but it impacts the rates that Canadian consumers get from their banks on things like savings accounts and variable rate loans. Normally, the bank meets every six weeks to set its rate and rarely makes adjustments to the rate outside of that time frame. But the COVID-19 crisis has thrown that timeline out the window, and the bank has now made two unscheduled cuts to its benchmark rate — half a percentage point two weeks ago, in addition to the half-point today.
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