Bank or Canada Cuts target lending rate 50 bps

March 4, 2008 | Market Update | By Aaron Rossetti

The Bank of Canada cut its key overnight lending rate by 50 basis points this morning, bringing it to 3.5%. This rate was last seen in January 2006. The Bank indicated that "further monetary stimulus is likely to be required in the near term to keep aggregate supply and demand in balance and to achieve the 2% inflation target over the medium term."