Ottawa seeking lower credit card interest rates amid COVID-19 crisis

Lower-interest credit could be made available for Canadians

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

Prime Minister Justin Trudeau says the government is also looking at extending lower-interest credit directly to consumers.

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

Speaking at his Ottawa residence this morning, Trudeau says Finance Minister Bill Morneau is in talks with major banks about doing things to narrow the gap.

“We recognizes they are a significant challenge for many Canadians at this point,” Trudeau said.

“We are looking at making credit more available and less expensive for Canadians to make it for the next few months.”

He says the government is spending billions on programs to help individuals pay their bills over the next few months as the novel coronavirus forces people out of work due to illnesses and enforced closures.

He says lowering the costs Canadians have to pay as they rely on borrowing to cover their expenses is another part of the effort.

– with files from Katya Slepian, Black Press Media.

More to come.


@katslepian

katya.slepian@bpdigital.ca

Like us on Facebook and follow us on Twitter.

CoronaviruseconomyJustin Trudeau

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

Okanagan temperatures to be in the double digits all week

Kelowna’s forecast projects a high of 17 degrees on Thursday

COVID-19: Website created to let Revelstokians know what’s open and what isn’t

‘If people don’t know what’s open, it’s a barrier to help others’

COVID-19: More infected passengers on planes flying to and from Okanagan and Kamloops airports

The BC Centre of Disease Control has identified numerous flights with COVID-19 cases

B.C. firefighters only responding to most life-threatening calls during COVID-19 pandemic

The directive comes after province spoke with paramedics, fire services, according to top doctor

WATCH: Kelowna songwriters release health care workers video tribute

The couple recently asked for selfies from frontline workers to include in the music video

Van crashes into Kamloops home

Police say the driver went into medical distress before the crash

Kelowna RCMP seizes guns, illicit drugs following disturbance

RCMP seized three firearms and a variety of suspected illicit and prescription drugs

Salmon Arm Silverbacks remember Humboldt Broncos on anniversary of fatal crash

Sixteen people killed, 13 injured after semi collided with team bus on April 6, 2018

West Kelowna birthday parades cancelled, Easter drive-by egg hunt still on

West K Party Parades made the decision to keep community safe

Man who allegedly spit on Kelowna cop facing assault charges

‘Spitting on anyone is always a serious assault but to do so in this current pandemic is particularly unacceptable’

Giants Head Grind postponed

Uphill race in Summerland will not proceed due to COVID-19 pandemic

UPDATE: UK PM Boris Johnson moved to intensive care after COVID-19 symptoms worse

He has been quarantined in his Downing St. residence since being diagnosed with COVID-19 on March 26

Most Read