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- BoC: Better late than never – BMO
BoC: Better late than never – BMO
NFXStreet reports that Benjamin Reitzes from BMO Economics notes that the Bank of Canada (BoC) has brought policy rates back to 2009 crisis low as the economic hit from COVID-19 is expected to be severe.
“The BoC cut rates 50 bps to 0.25%, moving policy rates back to the lows seen during the financial crisis just over a decade ago.”
“The BoC announced it is officially joining the QE club, as it will purchase at least $5 bln per week in Government of Canada bonds, that equates to about 1% of GDP per month. Furthermore, the Bank is launching a Commercial Paper Purchase Program (CPPP) to support short-term funding markets.”
“At the presser Governor Poloz addressed the option of negative rates, saying that while -0.5% is the theoretical lower bound for policy rates, it's something that's not high on their to-do list.”
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