Canada's central bank said the impact of the novel coronavirus pandemic on the global economy appears to have peaked.

The central bank said the move would "help support businesses and consumer confidence at a difficult time.''

Since the bank's most-recent public comments in early July, there's mounting evidence of a slowing global economy mostly due to the escalating U.S.-China trade war

The central bank has held the rate at that level since October last year.

The line of credit would last no more than two years and offer an interest rate of prime minus 1.18 per cent.

Governor Stephen Poloz has raised the benchmark five times since the summer of 2017 and he's instructed Canadians to prepare for an eventual era of three per cent interest rates.

The central ban, has been incorporating into its projections the fallout of U.S. steel and aluminum tariffs as well as retaliatory measures by Canada and others.

Jens von Bergmann has created a new school tax calculator he says could help add perspective to the debate.

The rate hike was widely expected.

BMO chief economist and managing director Doug Porter warns “the loonie has never met a financial sell-off it didn’t want to join. "