Interest Rates: Bank of Canada Cuts Overnight Rate Again
The Bank of Canada (BOC) cut their overnight by 25 basis point and the U.S. Federal Reserve cut it's overnight rate by 75 basis points. The BOC says they were prompted to do this as “further stimulus is likely to be required in the near term to keep aggregate supply and demand in balance and return inflation to the target over the medium term" and that “the 2008 outlook for the US economy is now significantly weaker than at the time of the October MPR”.
The Canadian announcement came shortly after the US rate cut announcement that was prompted by a “weakening of the economic outlook and increasing downside risks to growth" (fromthe their announcement) in the US economy.
Some good news today with the Toronto Stock Exchange was up today after a rough day yesterday. If you need your money in the short term it might be time to have a conversatio with you stock broker or financial planner.
Matthew Collinge: www.604homes.com - Royal LePage Westside
photo credit to Daquella manera on Flickr