The Bank of Canada cut its overnight interest rate by a quarter of a percentage point today while saying that it expects troubles related to the U.S. subprime mortgage market to last longer than expected, reports Reuters Canada. The bank’s move to cut the rate to 4.25% came against expectations. The bank did not give any indications as to whether it was leaning toward another rate cut in January. The Bank of Canada will meet again on Jan. 22.
Canadian Bank Cuts Rate, Says Subprime Problems Will Last