Bank of Canada slashes policy rate, to start purchase of government securities

The Bank of Canada lowered on Friday its key policy rate by 50 basis points to 0.25% in an effort to support the Canadian financial system and the economy during the coronavirus pandemic.

The central bank also launched a new program, the Commercial Paper Purchase Program (CPPP), to help alleviate strains in short-term funding markets, and it said it would begin acquiring Government of Canada securities in the secondary market. It will begin with purchases of C$5 billion per week, across the yield curve.