Here is the press release:
The Bank of Canada today announced that it is lowering its target for the overnight rate by three-quarters of a percentage point to 1 1/2 per cent. The operating band for the overnight rate is correspondingly lowered, and the Bank Rate is now 1 3/4 per cent.
The outlook for the world economy has deteriorated significantly and the global recession will be broader and deeper than previously anticipated. Global financial markets remain severely strained. Measures taken by major governments are beginning to encourage credit flows, although it will take some time before conditions in financial markets normalize. In addition, a series of recently announced monetary and fiscal policy actions will also support global economic growth.
The last time the Canadian central bank cut by 3/4 percentage points was on October 23rd, 2001. They had already cut from 4% to 3.5% along with other central banks after the tragic events of September 11th. Then the Bank of Canada followed up with a cut from 3.5% to 2.75%.
Here is the updated chart for the global central bank rates:
Canada now has the second lowest rates, after the US. Or third, if you want to count Japan (but why would you?).
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