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Bank of Canada set to detail impact of COVID-19, outlook for economy

Announcement coming
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The Bank of Canada will look at the impact of COVID-19 on the national economy, in an April 15, 2020 story. (Photo by THE CANADIAN PRESS)

OTTAWA — Canada’s central bank will make an announcement today on its key interest rate and detail the impact of COVID-19 on the national economy.

The bank has slashed its trend-setting interest rate since the beginning of March, including two unscheduled cuts as an emergency move against the pandemic’s economic fallout.

There is general expectation among economists that the Bank of Canada will keep the target “overnight rate” at 0.25 per cent.

At the same time, the central bank will also release its view of the economic impact from COVID-19 and outlook for the domestic economy a day after the International Monetary Fund predicted Canada’s economy to contract by 6.2 per cent this year.

Statistics Canada will also release GDP figures for March and the first quarter of the year.

The national statistics office says the “nowcast” figures will provide a first estimate of the economic impact of COVID-19.

This report by The Canadian Press was first published April 15, 2020.