Bank of Canada lowers overnight rate target by 1/4 percentage point to 1/4 per cent and, conditional on the inflation outlook, commits to hold current policy rate until the end of the second quarter of 2010

The Bank of Canada lowered its prime rate to 1/4 per cent on April 21, 2009 and, conditional on the inflation outlook, commits to hold current policy rate until the end of the second quarter of 2010.


"The Bank was unusually explicit in its language about holding its key interest rate at its rock bottom, now that it further downgraded its inflation outlook," said CREA Chief Economist Gregory Klump. "By saying ‘the target overnight rate can be expected to remain at its current level until the end of the second quarter of 2010 in order to achieve the inflation target,' the Bank has removed any guesswork for projections as to how long it will be before interest rates can be expected to begin rising."

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Marlene Ofter

Marlene Ofter

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