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Bank of Canada chops borrowing costs to 50-year low
4 z T% k; s8 `: W. ~( qLast Updated: Tuesday, December 9, 2008 | 9:28 AM ET Comments80Recommend83# V1 e& r6 K* I$ S9 \3 P
CBC News+ }2 n; M3 s- Y7 q$ h9 G Q
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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.
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4 n: U% O, {) e2 J* O2 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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( |/ m' O, z) [/ v/ \- {8 {"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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"The recent declines in terms of trade, real income growth, and confidence are prompting more cautious behaviour by households and businesses."5 M1 Q! t- j6 g. T. n) I5 h
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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./ x! \$ a6 Y* ?1 ] h) q
8 L7 _, S& i B Z, P/ T+ fIn 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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