The Bank of Canada is trying to stimulate spending during the COVID-19 crisis.
Finance Minister Bill Morneau says the government bank has lowered its prime rate half a percent to 75 percent to help battle the economic effects of the coronavirus.
“What we are experiencing is a health crisis. Given its breadth across the globe, it also has important economic consequences. The uncertainty of the spread of COVID-19 has increased volatility in our markets,” said Morneau.
Observers are calling the central bank move a surprise since it is the second time the rate has been cut this month.
Morneau says it is part of the overall plan to help deal with the economic impacts of the virus including a stimulus package.
