Bank of Canada Cuts

The Bank of Canada has lowered its key interest rate by 0.75 to 1.5%,the lowest rate since 1958.The cut was more than projected.The key rate is the target rate for overnight loans between commercial banks.For the first time in the financial crisis,the Bank of Canada declared that Canada is now entering a recession.It will continue to monitor carefully economic and financial developments in judging to what extent further monetary stimulus will be required.Mark J. Carney is Governor of the Bank of Canada.