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Feds urge banks to lower interest rates during COVID-19 crisis

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Shady Salah – Media in Toronto

The federal government has urged banks and credit-card companies to lower interest rates on Canadians struggling financially because of the COVID-19 pandemic.

In his daily update to Canadians Thursday, Prime Minister Justin Trudeau said the government is also looking at extending lower-interest credit directly to consumers.

“I can assure you that the finance minister has had conversations directly with the banks about credit card interest rates,” he said.

“We recognize that they are a significant challenge for many Canadians at this point. That is why we are encouraging them to take action to alleviate the burden for Canadians. At the same time we are looking at our end at making credit more available and less expensive for Canadians to be able to make it through the next few months.”

The Bank of Canada slashed its trend-setting interest rate to try to diminish the effects on business from a slowing economy, but credit-card interest rates, the ones that matter most directly to most consumers, remain high.

 

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