The Bank of Canada has lowered its policy rate by 50 basis points, joining several other central banks attempting to stay ahead of the economic impacts of the coronavirus.

The move, which mirrors a surprise action made on March 3 by the Federal Reserve, leaves the central bank’s policy rate at 1.25%. 

“While Canada’s economy has been operating close to potential with inflation on target, the Covid-19 virus is a material negative shock to the Canadian and global outlooks,” the central bank said