Bank Rate Lowered by ¼ Percentage Point to 5¼ Per Cent
The Bank of Canada today lowered its Bank Rate by ¼ of one percentage point to 5¼ per cent. The Bank's operating band for the overnight rate was similarly adjusted to a range of 4¾ to 5¼ per cent.
This decrease in short-term interest rates follows the move yesterday by the U.S. Federal Reserve to lower the federal funds rate by ¼ of one percentage point to 4¾ per cent.
With the support that this move by the Federal Reserve provides to help stabilize financial markets in the United States and abroad, and given low and stable inflation in Canada, the Bank judged that a similar ¼ of one percentage point decline in Canadian short-term interest rates was appropriate.