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Bank of Canada Holds Key Interest Rate Target to 0.25%

The Bank of Canada says it has gone as low as it can go with its prime lending rate target.

The central bank held the overnight lending rate to 0.25%.

The bank also estimates the downturn in the Canadian economy will be the worst ever with Stats Can saying economic activity dropped 9-percent in March.

The Bank says the speed of recovery depends on containment efforts to control the spread of COVID-19.  If it is a fast rebound then the economic impact will be deep but relatively short-lived.  The worst case would see businesses close for good and longer waits on the unemployment line for people as they look to find work.

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