Canada’s Rate at Half-Century Low

The Central Bank of Canada has slashed their interest rate to the lowest level it has been in fifty years to 1.5 percent. The cut was to hopefully promote economic growth. The Central Bank said, “The global recession would be broader and deeper than previously anticipated.” The action by governments across the globe has begun to rebuild the trust in financial markets.

The decline in trade and income has made households and business more cautious. To help restore this confidence, the Canadian government has just recently passed a $19 billion bailout package that would let them buy mortgages from troubled banks. The economy of Canada is closely tied to that of the United States, the largest importer of Canadian goods.