On Friday, March 27, 2020, the Bank of Canada issued an unscheduled announcement, updating monetary policy and revealing new initiatives to defend Canadian households. Those announcements include, but aren’t limited to:
- Lowering the overnight target rate by 0.5 per centage points to 0.25 per cent;
- A quantitative easing program with the purchase of a minimum of $5 billion per week of Government of Canada securities in the secondary market;
- A Commercial Paper Purchase Program (CPPP) will help to alleviate strains in short-term funding markets used by businesses (more details forthcoming)
The Bank of Canada’s next scheduled date for announcing the overnight rate target is April 15, 2020.