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BoC Signals More Rate Cuts To Come, Projects `Deeper And Protracted` US Recession [USD/CAD]
4/22/2008 9:10:55 AM The loonie eased slightly against the dollar Tuesday morning in New York after the Bank of Canada lowered its key overnight lending rate by 50 basis points to 3 percent, as expected. The loonie slipped to an intraday low of 1.0110 after hovering near 1.006 in early dealing.

In its accompanying statement, the BoC signalled more interest rate cuts in the medium-term. The central bank pointed out that growth in the global economy has weakened, reflecting the effects of a sharp slowdown in the U.S. economy and ongoing dislocations in global financial markets.

The statement also noted that growth in the Canadian economy has also moderated as buoyant growth in domestic demand, supported by high employment levels and improved terms of trade, has been substantially offset by the fall in net exports. The Bank also projected a deeper and more protracted slowdown in the U.S. economy.