The Bank of Canada has lowered its target for the overnight rate by half a percentage point to 0.25 per cent.

This is the “lower bound” according to the Bank of Canada and is intended to help support the Canadian economy in light of the COVID-19 pandemic.

The Bank of Canda is also launching two new programs; The Commercial Paper Purchase Program to help alleviate strain in short-term funding markets and the Bank will begin acquiring Government of Canada securities in the secondary market. It will be adjusted as conditions warrant.

Further details are available here.