Canada cuts interest rates to 5% to boost demand

CANADA - The Bank of Canada on Apr 17 cut its key lending rate to 5.0 percent from 5.25 percent and the overnight rate to 4.75 percent from 5.0 percent to support the economy in the face of slowing domestic demand.

"Since late 2000, the pace of economic expansion in Canada has slowed to a rate below the economy's long-run growth potential," the bank said in a statement, noting that the slowdown since early March 2001 was "broadly" in line with bank expectations.

Markets had widely forecast a re