MNI POLICY: TEXT: BOC Gov. Poloz Opening Statement

By Greg Quinn

     OTTAWA (MNI) - Here is the text of BOC Governor Stephen Poloz's statement

at a press conference Friday announcing a 50bp interest-rate cut to 0.75%.

     Thank you, Minister. The Bank of Canada is contributing to this collective

effort to support the Canadian economy and financial system, and to ensure

credit channels remain open.

     The Bank is cutting its target for the overnight rate by 50 basis points to

0.75% of a percent. It is already clear that the spread of the coronavirus is

having serious consequences for Canadian families, and for Canada's economy.

     In addition, Lower prices for oil, even since our last scheduled rate

decision on March 4, will weigh heavily on the economy, particularly in energy

intensive regions.

     Combined with the other measures announced today, lower interest rates will

help to support confidence in businesses and households. For example, borrowing

costs will be lowered both for new purchases and through variable rate mortgages

and mortgage renewals.

     Today, the Bank also announced a new Bankers' Acceptance Purchase Facility.

This will support a key funding market for small- and medium-size businesses at

a time when they may have increased funding needs and credit conditions are

tightening.

     The Bank has also taken other steps to ensure that the Canadian financial

system has sufficient liquidity. These additional measures have been announced

in separate notices on the Bank's website.

     The Bank of Canada is taking concerted action to support the Canadian

economy during this period of economic stress. The Bank's Governing Council

stands ready to do what is required to support economic growth and keep

inflation on target, and we will continue to ensure that the Canadian financial

system has sufficient liquidity.

--MNI Ottawa Bureau; +1 613-314-9647; email: greg.quinn@marketnews.com

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