In a press release posted on Bank of Canada’s website, the National Bank said it lowered its interest rate to 75 percent more after it recently decreased its overnight rates to 50 basis points. The unplanned decision is a part of the measures to counteract the negative impacts of the COVID-19 outbreak and the most recent drop in oil prices.
What’s the role of the Digital Charter in Helping the Economy
The world is seeing COVID-19’s unbelievable effects not just to a country’s dynamics but to day-to-day living. Canadians are becoming more fearful of the virus as its infected toll rises, and they are growing equally worrisome about how regular life has ceased to give way to drastic changes.
Self-isolation and social distancing measures are giving way to work-from-home setups, class suspensions, business closures, and the cancellations of significant events and gatherings. These changes do not only impact business-as-usual, but it also changes the way Canadians look at their security and stability. The virus changes how people can interact with others, including their families, making technology more vital than ever.
The Digital Charter plays a crucial role during this time as a means to help the country’s digital economy thrive. Today, as the virus affects the world indefinitely, there is a need for better technology that could help in assuring Canadians that everyday life is bound to get better. The Digital Charter could give way to innovations that could change education, work productivity, financial services, and many others.
First period of the digital charter is related to three main industries – mobile platforms, fintech, and cryptocurrencies. All those three industries were testes on the iGaming sector. The casino and gambling sector is very sensitive in general. Canada has a very widely known casino industry as local venues dominate the world market. From 2018, online casinos were adapted to mobile platforms. Canadain casinos were allowed to create mobile apps and let the gamers play through mobile phones. The mobile casino became the trend after a year because it’s very comfortable for gamers to play casino games on the phone. Along with mobile apps, Canadian casinos were allowed to implement financial technologies and offer gamers different currencies. As the local casinos became popular on a global scale, they have allowed gamers to send and receive funds with Bitcoin and other payment processing systems such as PayPal, Kiwi, Payoneer, etc. Digital charter helped the casino industry to flourish and that’s a clear example of the government’s hard work.
Why the Bank of Canada Lowered its Rate Target
Bank of Canada is aware of the ramifications of the global pandemic, not just to the Canadian economy but to every Canadian family in the country. Also, a recent drop in oil prices will cause additional setbacks on top of those caused by the outbreak. The financial institution said, such an issue in the oil industry will profoundly affect those in regions with high energy consumption.
In line with this, the Bank has vowed to provide full updates next month with regards to global economies and the COVID-19 outbreak’s effect on the Canadian economy. And given that the pandemic is a rapidly evolving universal matter, the Governing Council is ready to apply the necessary changes in monetary policies if the economy requires it.
These changes to Bank of Canada’s rate targets are all in keeping with the necessity to financially help Canadians during this most challenging time for the nation. The virus does not only affect economies but also impacts the pockets of Canadians whose jobs and businesses are affected by the fast-spreading infection.
Canada Should Be Ready for a Recession
Economists say an economic recession in Canada is inevitable, mainly as the impacts of the coronavirus are already affecting the Canadian economy and the oil and gas sectors. This prediction was made even more palpable with the recent interest rate cuts announced by the Bank of Canada.
This unexpected move by the national Bank signifies to all just how dangerous the coronavirus situation is and that the whole nation should be ready to face more severe consequences that could impact Canadian families and the economy.