Canada cuts rates to lowest level in 40 years

CANADA - The Bank of Canada surprised the markets by cutting interest rates by three-quarters of a point to the lowest level in 40 years on Tuesday.

Citing the impact of the 11 September attacks on an already weakening economy, the bank cut its target for the overnight rate to 2 3/4 per cent.

The bank rate was also cut by three-quarters of a point to 3 per cent.

Analysts had forecast that the bank would cut rates by half a point. However, in a statement the bank warned that the economy was slowi