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Bank of Canada chops borrowing costs to 50-year low T6 x. R- u2 l
Last Updated: Tuesday, December 9, 2008 | 9:28 AM ET Comments80Recommend83
8 F" k! F& `( C# zCBC News1 H0 b+ h, F) x
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The 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.9 ]$ ]4 M6 X6 ^! T) r7 ^0 U% \- H
3 L- \! h9 E- PWith 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.
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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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3 \* I8 T0 D8 P: m"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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0 r: g" z; J+ j8 F+ ?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.2 ^8 h! m2 C+ H" p+ F z: A
3 s* x4 X6 x* ], `/ v* \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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