By Thomas I. Likness
EBC Edmonton Bureau

EDMONTON (Eagle News) — Canada’s central bank rate is at an all time low and the prime minister has promised more help to get people back to work.

The Bank of Canada Friday lowered its overnight rate by 50 basis points to ¼ percent in an effort to spur economic activity.

In a statement, the bank said it hoped to ease the cost of borrowing and help keep credit available to people and companies.

Prime Minister Justin Trudeau said he is pleased with the bank’s action, the third interest rate cut in a month.

“Monetary policy is very important,” said Trudeau. “But as the governor of the bank has repeatedly said, the most important thing we can do to help people and the economy in this crisis is for the government to take strong fiscal action.”

Also Friday, Trudeau increased the wage subsidy to small- and medium-sized business from 10 percent to 75 percent for qualifying businesses.

“This means that people will continue to be paid even though their employer has had to slow down or stop its operations because of COVID-19,” said Trudeau. “We’re helping companies keep people on the payroll so that workers are supported and that the economy is positioned to recover from this. That is out priority.”

In addition, Trudeau said the government will help make money available to businesses that are having cash flow problems through the Canada Emergency Business Account.

He said under this new measure, banks will soon offer $40,000 loans which will be guaranteed by the government to qualifying businesses.

“The loan will be interest free for the first year, and if you meet certain conditions, $10,000 of it will be forgivable,” said Trudeau.

 (Eagle News  Service)