0.75% cut by Bank of Canada

[BankAdmin]

The Bank of Canada cut its key interest rate on Tuesday by 0.75% to the lowest level since 1958! Canada's benchmark overnight rate is now only 1.5%. This was another confirmation that Canada is entering a serious recession and the bank is desperately trying to restore normal credit flow and to help the sagging Canadian economy.

The big Canadian Banks didn’t match the full cut, and dropped their prime rates by 0.5%, which will likely make many over-indebted Canadians addicted to cheap or free money angry.

The Canadian Central Bank stated the following: "The outlook for the world economy has deteriorated significantly and the global recession will be broader and deeper than previously anticipated," The Bank of Canada left the door open for more rate cuts in the future.