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Bank of Canada chops borrowing costs to 50-year low
/ \3 }6 p9 \7 ^4 W5 n7 LLast Updated: Tuesday, December 9, 2008 | 9:28 AM ET Comments80Recommend83: _& f: {, o9 s) ~
CBC News! ?" t+ Z+ H( D% u: U+ X
6 M4 ~0 T3 r! ]* s" {8 l+ o) IThe Bank of Canada chopped a key interest rate by three-quarters of a percentage point on Tuesday as the central bank moves to combat economic weakness.
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, @1 v1 d. h! S% ?% QWith the interest rate reduction — which was the biggest drop since one of a similar size in October 2001— the bank's overnight rate now stands at 1.5 per cent, a level not seen since 1958.& ^% F' r, j$ v
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"While Canada's economy evolved largely as expected during the summer and early autumn, it is now entering a recession as a result of the weakness in global economic activity," the bank said.5 f* d9 C3 S) D' q
, s0 d- K$ E0 p5 p"The recent declines in terms of trade, real income growth, and confidence are prompting more cautious behaviour by households and businesses."
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Economists had been divided over whether the central bank would cut by one-half of a percentage point or go with a more aggressive reduction.
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In the wake of the Bank of Canada's decision, the Canadian dollar was trading down 0.93 of a cent to 78.81 cents US. |
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发表于 2008-12-9 08:45
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