Canadian Central Bank Cuts Key Rate By Half-point, Citing Weaker Outlook For U.s.

NEW YORK (MarketWatch) -- The Bank of Canada on Tuesday said it is lowering its target for the overnight rate by 50 basis points to 3%, with the bank projecting a "deeper and more protracted slowdown in the U.S. economy." The bank forecast the Canadian economic would grow by 1.4% this year, and 2.4% in 2009.

 

Bank also said that further monetary easing was likely to be necessary.