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Canada Cuts Interest Rates Because of Virus Outbreak

Canada Cuts Interest Rates Because of Virus Outbreak Photo: WDIO-TV file

Updated: March 05, 2020 03:24 PM

TORONTO (AP) - Canada's central bank has cut interest rates by half a percentage point because of the new coronavirus outbreak.

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The Bank of Canada said Wednesday that the virus represents a significant health threat to people in a growing number of countries. It says business has fallen sharply in some regions and supply chains have been disrupted.

The move matches what the U.S. Federal Reserve has done.

On Tuesday, Canada was among seven major economies which pledged to use “all appropriate tools" to deal with the spreading cornavirus. The joint statement from the United States, Japan, Germany, Britain, France, Italy and Canada was issued after a conference call among the finance ministers and central bank presidents, led by U.S. Treasury Secretary Steven Mnuchin and Federal Reserve Chairman Jerome Powell.

The G-7 has issued similar statements during  periods of market turmoil, such as the Sept. 11, 2001 terrorist attacks.

Copyright 2020 The Associated Press. All rights reserved.

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