Abu Dhabi, UAEFriday 30 October 2020

CORONAVIRUS

Coronavirus: Canada unveils stimulus measures to reduce economic hit

Prime Minister Justin Trudeau unveiled the emergency measures while in self-isolation

The Bank of Canada cut interest rates by half a percentage point in an emergency move to buffer the nation's economy. Bloomberg
The Bank of Canada cut interest rates by half a percentage point in an emergency move to buffer the nation's economy. Bloomberg

Canadian authorities on Friday announced emergency measures over the coronavirus outbreak, including a surprise half-point interest rate cut.

Ottawa advised citizens against non-essential foreign travel, moved to funnel international flights into a few airports, and banned cruise ships carrying more than 500 people from ports until the end of June.

Politicians also suspended the House of Commons, but not before ratifying a new North American trade pact, the US-Mexico-Canada agreement.

Canada’s Prime Minister Justin Trudeau has been working from home since his wife Sophie Gregoire tested positive for coronavirus. Reuters
Canada’s Prime Minister Justin Trudeau has been working from home since his wife Sophie Gregoire tested positive for coronavirus. Reuters

The Bank of Canada slashed its overnight rate for the second time in nine days and at the same time the government said it would offer C$10 billion (Dh26.4bn) in credit support to businesses. Bank of Canada governor Stephen Poloz and Finance Minister Bill Morneau held an unprecedented joint news conference to announce the moves.

“We seem to be approaching a different phase right now” in the spread of the coronavirus, said Prime Minister Justin Trudeau, who was in self-isolation after his wife tested positive for the virus.

In an outdoor news conference held in front of his Ottawa residence where he will spend the next two weeks working, Mr Trudeau promised financial aid for Canadians.

“We do not want any Canadian to have to worry about whether or not they’re going to be able to pay their rent, whether or not they’re going to be able to buy groceries, or care for their kids or elderly family members,” Mr Trudeau said.

“The government of Canada will be introducing a significant fiscal stimulus package in the days ahead.”

Canada has reported about 200 cases of the virus, with one death. British Columbia reported 11 new cases on Friday, up from 53 on Thursday, including a “cluster” of three in a north Vancouver hospital. Seven of Canada’s 10 provinces have recorded infections of the respiratory illness.

Canada’s chief medical officer urged citizens to avoid all non-essential travel abroad and said travellers returning home should consider self-isolation, even if they are not coming from one of the hot spots.

“This is a serious public health threat, as well as a crisis,” Health Minister Patty Hajdu told reporters.

All national museums are closing on Saturday until further notice, and federal department heads in the public administration have been told to be as flexible as possible in allowing people to work from home.

British Columbia and Ontario banned all public gatherings of more than 250 people. Quebec cancelled school for two weeks starting on Monday and Manitoba for three weeks starting on March 23.

The new budget, which was supposed to be presented on March 30, will be delayed and no new date has yet been set. But Mr Morneau said he would present a stimulus package next week.

“These are extraordinary times and that means we are ready to take extraordinary measures,” Mr Morneau said. “We are going to do whatever it takes to protect Canadians and keep our economy strong.”

Mr Trudeau’s government is mulling a multi-billion-dollar package for industries most hit by the outbreak, including airlines, a source directly familiar with the matter told Reuters. It would allow provinces to take action to support families, workers and employers, the source said.

The Prime Minister announced on Thursday that he would be in isolation for as much as two weeks after his wife, Sophie, became infected with the virus.

Mr Trudeau said he felt well and Sophie was “doing fine”.

“She’s basically got mild, flu-like symptoms. She’s getting lots of rest, drinking lots of fluids,” he said.

Updated: March 14, 2020 04:44 PM

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