Canada cuts rate for ‘insurance’ against oil price drop

stephen-poloz
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

To continue reading...