Bank of Canada cuts key interest rate to 4.25%

[TrogL]

Source: CBC News

The Bank of Canada cut its key interest rate by a quarter of a percentage point Tuesday, citing the increased risks to Canada's economy from the weakness south of the border.

...

The chartered banks quickly lowered their prime lending rates by a quarter of a percentage point to six per cent.

The rate cut also led to an immediate drop in the Canadian dollar on foreign exchange markets. The loonie was off more than 1.2 cents to 98.81 cents US at 2 p.m. ET.



Read more: http://www.cbc.ca/money/story/2007/12/04/bankrate.html

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I'm not sure why they did this unless they're expecting really BAD things :scared: to happen down south.

[ben_meyers]

1. My Canadian Snow Bird friends are saying

that too much money has been flowing to the states. Of course they have been part of the problem while enjoying their increase in purchasing power here.