Bank of Canada cuts rates by quarter point

The Bank of Canada announced Tuesday 2 March that it is lowering its target for the overnight rate by one-quarter of one percentage point to 2 1/4 per cent.

The operating band for the overnight rate is correspondingly lowered, and the Bank Rate is now 2 1/2 per cent.

Information received since the Bank's last interest rate announcement has been broadly consistent with the economic outlook presented in the January Monetary Policy Report Update. As expected, core and total CPI inflation in Januar