Bank of Canada Cuts Interest Rates 50 Basis Points
March 4, 2008
Before the opening of markets today, March 4, the Bank of Canada ( BOC ) announced it’s largest interest rate cut since November 2001. The BOC announced that it would lower its key overnight lending rate by 50 basis points to 3.50%. This brings the Canadian rate in line with the American rate.
In response, the Canadian dollar fell against the US dollar. The US dollar rose to C$0.9925 after the announcement.
The markets had already expected a 50-basis point drop in interest rates. This was the largest single drop in interest rates announced by the BOC. The Bank of Canada has not dropped interest rates by more than 25 basis points since the Sept 11, 2001 attacks on the US.
