Government of Canada Response
The Government of Canada is set to make announcement at 1:00 pm today.
Last week, the Government of Canada announced $10 billion available through the Credit Facility Program to the BDC and EDC for Canadian businesses. This is in addition to the $1 billion COVID-19 Response Fund announced on March 11th.
On Friday, March 13th, the Bank of Canada announced it has lowered its target for the overnight rate by 50 basis points to ¾ percent. The Bank will provide a full update of its outlook for the Canadian and global economies on April 15. As the situation evolves, the Governing Council of the Bank of Canada stands ready to adjust monetary policy further if required to support economic growth and keep inflation on target.
In addition, the Office of Superintendent of Financial Institutions announced it is lowering the Domestic Stability Buffer by 1.25%. This means an increase of lending capacity, resulting in an additional $300 billion for bank loans.
The House of Commons and Senate and their related committees will adjourn until mid-April. They will continue to work virtually to take additional actions and may be recalled together on an emergency basis as required.