Market News

BoC Rate Decision
The Bank of Canada's rate decision was released showing a surprise cut in rates by 25 basis points to take there benchmark rates to 4.25% against the widely expected unchanged rates of 4.50%.
Losses from the U.S. sub-prime mortgages increased as the housing market slump continues to worsen causing bank funding costs to increase worldwide including Canada. With a damaged U.S. economy, Canadian exports are facing increased risks to the downside but after the collapse of the Canadian dollar to reach 1.0152 against the US dollar, marking the highest since September 20; it might not be that bad. Inflationary pressures changed the bank's outlook for 2009 concerning inflationary risks causing them to go to the downside.