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BoC's Poloz discusses reasons behind rate cut

Bank of Canada governor Stephen Poloz said today that Canada's central bank was leaning towards cutting its trend-setting interest rate this week even before the novel coronavirus pushed it to take a more dramatic step. He said the immediate effects the virus will have on business investment and consumer spending meant the downside risks to the economy today outweighed continuing concerns that cutting rates would fan financial vulnerabilities in Canada, such as high household debt. Poloz said Thursday the bank wanted to cut rates "in a decisive manner" to have a cushion for Canada's economy against the effects of COVID-19, similar to when oil prices collapsed about five years ago.

The Canadian Press

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