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Bank of Canada (BoC) commits to do what is necessary to keep system running, Dawn Desjardins, a VP & Deputy Chief Economist at the Royal Bank of Canada reports.

Key quotes

“The BoC Governor did not make any new policy announcements today but ran through the long list of policies put in place to support the financial system and ensure that credit is available to households and businesses.” 

“The bank has been clear that there are more policy levers that could be pulled in the toolkit. These include lowering the overnight rate to the lower bound of 0.25% and employing additional non-traditional measures.” 

“The Governor said that what is important is that the programs can be scaled up or down as needed.”

“The private sector is also working to help Canadian households with Canada’s banks allowing customers to defer mortgage payments for up to six months if faced with disruptions associated with the crisis.”