«This unscheduled rate decision is a proactive measure taken in light of the negative shocks to Canada’s economy arising from the COVID-19 pandemic and the recent sharp drop in oil prices,» the bank said.

Under normal circumstances, the bank meets every six weeks to set its interest rate, and only takes action outside of those time frames when the situation calls for it.

Friday’s decision shows just how seriously Canadian policy-makers are taking the coronavirus situation. It’s the first time the bank has moved its rate higher or lower outside of a scheduled meeting since the financial crisis in 2009.

«Pretty sure I’ve never seen that: a rate cut on a Friday afternoon,» said Doug Porter, chief economist with the Bank of Montreal. «Shows you just how unusual these times are to have the Bank of Canada to make an announcement like that at two o’clock on a Friday afternoon.»

The bank’s next scheduled rate decision is set for April 15, at which point the central bank says it will «provide a full update of its outlook for the Canadian and global economies.»

Porter thinks the bank will indeed cut again, but likely not before that scheduled meeting. «At this point, we’re penciling in another 50-basis-point cut … which will take them down to 0.25, which is as low as we got during the financial crisis.»

The bank’s rate impacts the rates that Canadian savers and borrowers get for things like savings accounts and mortgages.

All things being equal, the bank raises its rate when it wants to cool down an economy that is overheating with high inflation. It cuts when it wants to encourage people to borrow, spend and invest.

The global coronavirus pandemic has many worrying about what will happen to Canada’s economy as workers are quarantined and trade routes grind to a halt.

The Royal Bank of Canada said Friday it expects Canada to go into a recession later this year.