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Bank of Canada Drops Key Interest Rate to 0.75% amid Oil Slump Threat

Posted January 22, 2015

Under Economic Issues, International Trade Issues

(Andy Blatchford – Canadian Press)

The threat of sliding oil prices forced the Bank of Canada to drop its trend-setting interest rate Wednesday, a surprising move that revealed how the country’s economic outlook soured in just a matter of months.

The central bank, which nudged its key rate down to 0.75% from 1%, said the rapid oil-price collapse has created many unknowns around economic growth in the oil-exporting nation.

Until the effects of oil’s late-2014 tailspin started to trickle through, Canada appeared to be on the cusp of a promising post-recession rebound – and inching closer to a rate hike. Click here to read more.