Bank of Canada Shocks Market with Rate Cut
Globe and Mail - January 21, 2015 - The Bank of Canada announced a surprise quarter percentagepoint cut to its key interest rate Wednesday – a move it calls “insurance” against the potentially destructive effects of the oil price collapse. The reduction in the bank’s overnight rate to 0.75 per cent from 1 per cent – its first move since September, 2010 – comes as a precipitous drop in the price of crude slams Canada’s oil-dependent economy.
