Canada's central bank on Tuesday cut its trend-setting interest rate by quarter point to a record-low 0.25 percent and said it will likely stay there through June 2010.
The Bank of Canada said the global recession has intensified and they expect the recession in Canada will be deeper than anticipated.
The bank said it was conditional on inflation but they expect the rate to remain at its current level until the end of the second quarter of 2010. It said it was appropriate to provide more explicit guidance than is usual regarding its future path so as to influence rates at longer maturities.
The central bank said the economy will shrink by 3% this year, almost three times as much as the 1.2% it forecast in January.
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