OTTAWA — The Bank of Canada has cut its key interest rate by a quarter of a percentage point, and is indicating there are further cuts to come, in order to help Canada deal with a brutal U.S. slowdown.
The central bank said it is lowering its target rate to 4 per cent – the second month in a row for looser monetary policy – and said it was slashing its growth forecasts for the United States and Canada, for this year.
Inflation in Canada is also proving to be less of a threat than the Bank of Canada expected in its last forecast in October, the bank said, suggesting that prices will remain suppressed…
