The Bank of Canada says it has gone as low as it can go with its prime lending rate target. The central bank held the overnight lending rate to 0.25 per cent.
The bank also estimates the downturn in the Canadian economy will be the worst ever with Stats Can saying economic activity dropped 9 per cent in March.
The Bank says the speed of recovery depends on containment efforts to control the spread of COVID-19. If it is a fast rebound then the economic impact will be deep but relatively short-lived. The worst case would see businesses close for good and longer waits on the unemployment line for people as they look to find work.