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Bank of Canada chops borrowing costs to 50-year low
; `1 m3 }/ o- U0 ]Last Updated: Tuesday, December 9, 2008 | 9:28 AM ET Comments80Recommend831 K$ Z' ?7 H" J3 v
CBC News5 f9 y2 g! K* P. S
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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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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.
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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.) W) q* l+ ?, l" ?: D2 x! S
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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."
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9 c" i2 Y5 U, N0 r8 rEconomists 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 F% O7 z P8 {/ p; Q9 R' v- P
+ N! t r, a7 s @- Y: kIn 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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