OTTAWA: Canada’s central bank on Wednesday cut its key lending rate by 50 basis points to 1.25 per cent in response to the growing economic risk posed by the coronavirus epidemic.

The interest rate drop was the first in Canada since mid-2015, and followed a similar move on Tuesday by the US Federal Reserve and after G7 finance ministers and central bankers pledged a coordinated response to the virus.

The central bank also signaled that it stands ready if required to further cut rates “to support economic growth and keep inflation on target.”

Published in Dawn, March 5th, 2020