Bank of Canada cutting interest rates closer to zero, as tightening economic restrictions to contain a second wave of COVID-19 cases offset optimism that activity will rebound later this year.Interest rates were thought to have hit rock bottom in Canada after they were slashed 150 basis points last March to a record low of 0.25 per cent, a level the Bank of Canada considered the effective lower bound.
But in November, Governor Tiff Macklem said a lower floor could allow Canada’s central bank to ease further if the economy weakens.Data on Friday showed that Canada shed jobs in December for the first time in eight months.