NEW YORK (MarketWatch) -- Canada's central bank cut its benchmark interest rate more than expected, reducing the overnight rate by 75 basis points to 1.50% because of the "weakening outlook for growth and inflation." Most analysts expected a rate cut of 50 basis points. After the rate decision, the Canadian dollar fell 1.4% against U.S. dollar, accelerating its earlier losses. "While Canada's economy evolved largely as expected during the summer and early autumn, it is now entering a recession as a result of the weakness in global economic activity," the Bank of Canada said in a statement. The depreciation of the Canadian dollar will continue to provide an important offset to the effects of weaker global demand and lower commodity prices, the bank said.
