Bank of Canada cuts key rate for second time in two weeks

The Bank of Canada took a step to attempt to soften the blow of COVID-19 on the economy by dropping its key rate by another 50 bps to 0.75 per cent — the second cut in as many weeks.

The Bank of Canada also took additional measures with banker acceptances to keep the short term lending market liquid, to allow Canadian businesses to weather this storm.

And it “stands ready” to make further moves, according to Stephen Poloz, governor of the Bank of Canada.

In the U.S., there are expectations that the Federal Reserve could possibly cut the fed rate by 100 bps.

“As the Bank of Canada and Federal Reserve push key rates to zero, land prices stand to benefit,” says RealAgriculture founder Shaun Haney. “At the very least, you should be talking to your banker and exploring opportunities in the middle of this COVID-19 rate cutting.”

For farmers, the current economy may provide opportunities to refinance, lock in longer-term money, find relief on interest costs with floating mortgages, or buy land.

Leave a Reply

 

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Privacy Preference Center

Necessary

Necessary cookies help make a website usable by enabling basic functions like page navigation and access to secure areas of the website. The website cannot function properly without these cookies.

gdpr, __cfduid, PHPSESSID, wordpress_test_cookie, woocommerce_items_in_cart, woocommerce_cart_hash, wp_woocommerce_session, wordpress_logged_in, wordpress_sec, wp-settings, wp-settings-time, __cf_mob_redir, wordpress_cache, realag
__cfduid

Marketing

Measuring interactions with the ads on the domain.

__gads,fsk_ut_2317
scmtid,v,a,JSESSIONID
IDE

Statistics

These are used to track user interaction and detect potential problems. These help us improve our services by providing analytical data on how users use this site.

_ga,_gid,_gat,_cb,_chartbeat2,_chartbeat4
_ga,_gat
_ga,_gid
metrics_token

Preferences

Preference cookies enable the website to remember information that changes the way the website behaves or looks, like your preferred language or the region that you are in.

chartdefaults, comment_author, comment_author_email, comment_author_url
JSESSIONID, _os_session,anonymous_votes,csrf-param,csrf-token,user,user-id,user-platform,intercom-session,intercom-lou,intercom-session
personalization_id, tfw_exp