Canada cuts rates by 25 basis points to 4%

The Bank of Canada's rate-setting board opted on Tuesday to lower its benchmark overnight rate by 25 basis points to 4%.

The decision came a little over an hour after the Federal Reserve announced it was to slash its federal funds rate by 75 basis points. Marc Ostwald, an economist at Insinger de Beaufort, an advisory firm, told Central Bank News that the Bank of Canada's decision showed that, unlike the Fed, it was "clearly not driven by panic."

The decision, which was widely expected, was t