Bank of Canada Shocks Markets
The Great White North is throwing in the towel. In a surprise move aimed at taming the effects of crude’s collapsing prices, the Bank of Canada has cut its key interest rate from 1 to 0.75 percent. A big oil exporter, Canada has become the first G7 country to slash rates in response to the threat of deflation brought on by cheaper oil. It may not be the last: The slumping global economy is forcing central banks from the eurozone to Japan to consider drastic measures.