MW: Canada cuts interest rates by 50 basis points to 1%
Canada's central bank cut its benchmark interest rate by one-half of a percentage point to 1% Tuesday, saying that the global economic outlook has deteriorated since December and that the Canadian economy is now in recession. "Canadian exports are down sharply, and domestic demand is shrinking as a result of declines in real income, household wealth, and consumer and business confidence," Bank of Canada said in its monetary policy statement. The bank projected that Canada's economy will contract through mid-2009, with real GDP dropping by 1.2% this year on an annual average basis.
