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Bank of Canada chops borrowing costs to 50-year low
) y/ ~3 a$ {2 N8 ^$ bLast Updated: Tuesday, December 9, 2008 | 9:28 AM ET Comments80Recommend83
4 W' W0 Q4 `2 @7 v0 I$ XCBC News4 }9 c; O& w( ^, w& n
1 Z9 J& [; ?5 b) UThe 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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2 v+ w9 \2 Q: ^) \! ?With 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., d3 C. J/ P) b- K7 ]
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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.
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$ {# O8 [# u+ i- n& _"The recent declines in terms of trade, real income growth, and confidence are prompting more cautious behaviour by households and businesses."% H! \/ W* J& }) j0 p# p% R# |% Q
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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.7 x4 h9 B/ ]7 P& X6 K) w
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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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