BANK OF CANADA CUT ITS BENCHMARK INTEREST RATE - MOUNTING WORRIES - ECONOMIC TOLL OF THE CORONAVIRUS EPIDEMIC

OTTAWA—The Bank of Canada on Wednesday took a cue from the Federal Reserve and cut its benchmark interest rate by a half percentage point in response to mounting worries about the economic toll of the coronavirus epidemic.  It also signaled a willingness to ease further to guard against a deteriorating outlook.  The central bank said the spread of the coronavirus, which has infected more than 10,000 people outside China, represents a material negative shock to the Canadian and global economic outlooks. Its announcement came one day after the Fed’s emergency rate cut, also by a half percentage point.  “The outlook is clearly weaker now than it was in January,” the Bank of Canada said, referring to the last time it issued a policy decision. “As the situation evolves, Governing Council stands ready to adjust monetary policy further if required to support economic growth and keep inflation on target.”