The Bank of Canada (BoC) lowered its target for the overnight rate to 0.75 per cent today.

Accordingly, the deposit rate is 0.5 per cent and the bank rate is 1 per cent.

The BoC lowered rates considering the impact COVID is having on the economy. It was also designed to mitigate the negative effects of a sharp drop in oil prices. The bank will announce the next overnight rate target on April 15, and report on Canadian and global economies.

The BoC continues to monitor the Canadian economy and has already taken steps to ensure liquidity in the financial system. The Governing Council may also step in with legislation to manage inflation and maintain economic growth.

Source: BankofCanada.ca