Canada cuts rate for ‘insurance’ against oil price drop

Governor Stephen Poloz

The Bank of Canada moved its benchmark interest rate for the first time in over four years today, cutting it by 25 basis points to 0.75% in response to the sharp drop in oil prices.

Governor Stephen Poloz said the drop in prices was "unambiguously negative" for the Canadian economy, a net oil exporter, as he discussed the rate cut and latest monetary policy report, also released today.

Both headline and core inflation have hovered around 2% for the past year, and the central bank is concerned th

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