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Article: Bank of Canada Cuts Key Lending Rate
- Article from:
- AP Online
- Article date:
- October 23, 2001
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AP Online
10-23-2001
Bank of Canada Cuts Key Lending Rate
OTTAWA (AP) -- Canada's central bank cut its key lending rate by three-quarters of a percentage point Tuesday, blaming a worse-than-expected economy for the move that exceeded predictions of analysts.
It was the biggest reduction in a year of eight rate cuts, bringing the overnight rate that banks charge each other for loans to a 40-year low at 2.75 percent. The interest rate banks charge on overnight loans began the year at 5.75 percent.
The Bank of Canada's prime rate dropped to 3 percent, and major commercial banks followed the move with similar prime rate cuts 4.50 percent from 5.25 percent.
A Bank of Canada statement said the ...