Bank of Canada

On April 21, 2009, the Bank of Canada surprised markets with yet another rate reduction, bringing the overnight lending rate 25 bps lower to 0.25 percent. While the cut was unexpected by economists, a closer analysis of economic data that preceded the decision supports the move for further easing. A slew of reports suggest that the economy is indeed contracting at a much faster pace than originally predicted. GDP fell over 0.7 percent in January.