Canada lowers key interest rate

CANADA - Canada's central bank trimmed its key overnight interest rate on 29 May by 25 basis points to 4.5 per cent, stating that while US demand for Canadian products had slowed during the first part of the year, the domestic economy continued to show underlying momentum.

The Bank of Canada's rate cut failed to match a recent half point reduction in the US Federal Reserve Bank's fed funds rate target rate to 4 per cent. Economists said the Canadian central bank decided not to cut as aggressiv