Putting a floor under the economy
Since the onset of the pandemic, the Bank has established and expanded a range of facilities and purchase programs to address problems with market functioning and confidence. They are showing signs of succeeding:
- Access to liquidity has greatly improved in key financial markets that had been showing signs of significant stress.
- Many of the programs are now being used less than they were at inception.
Weathering the effects of containment measures
COVID?19 has hit many households and businesses hard, especially those that are highly indebted or have low cash buffers. Strong and targeted policy responses by governments, regulators and the Bank are supporting the Canadian financial system. During this period, emergency measures that provide basic incomes to households and help businesses access credit are crucial.
For its part, the Bank has taken action by:
- lowering the policy rate to 0.25 percent
- supporting the flow of credit to households and businesses
- strengthening the transmission of monetary policy so that lower policy rates can be passed through to borrowers
We will continue to assess the impacts of these measures and can adjust the scale of these programs as market conditions change.