Tuesday, October 21, 2008

Bank of Canada cuts interest rate

Canada's central bank cut its key interest rate by a quarter-point on Tuesday, saying Canada needs the stimulus to ward off the effects of a United States already in recession and a global economy heading there.

The cut to 2.25 percent Tuesday follows an unscheduled half-point reduction Oct. 8 in co-operation with other major central banks in an effort to ease lending and boost the global economy.

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