Bank of Canada cut interest rates by 0.5%
The Bank of Canada on Wednesday, March 4, announced a reduction in the key rate to 1.25%. He attributed this to a reaction to the spread of coronavirus, a threat to the Canadian and global economies.
In fact, it was not the virus that caused the easing of monetary policy, but the actions of the American mega-regulator. It is the emergency cut in the key Fed rate of America that forces other countries to do the same. Australia and Malaysia have already lowered interest rates. Also, representatives of the Bank of Japan announced the imminent adoption of similar measures.
A more predictable situation is now in the Euro zone. The ECB will also be forced to launch regular incentives, but the maximum that the ECB can give is only a tenth of a percent (reduction in deposit rates by 0.1%) and this will not bring any obvious economic effect.
Due to the predictability of regulators, the situation on currency pairs is becoming clearer. #EURUSD after the end of a hard correction (coronavirus) Euro is destined to grow throughout the current year.
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