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Bank of Canada cuts rates to 0.75% in surprise decision

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Investing.com -

Investing.com - The Bank of Canada cut its benchmark interest rate in a surprise decision in January, in a bid to boost inflation and stimulate growth, it announced on Wednesday.

The BoC said it was lowering its overnight cash rate by 25 basis points to 0.75% from 1.00% in a surprise decision.

The bank said in a statement that the move was in response to the recent sharp drop in oil prices , which will be negative for growth and underlying inflation in Canada.

The BoC added that the economy is expected to return to full capacity around the end of 2016, a little later than was expected in October.

BoC Governor Stephen Poloz was to comment on the decision at a press conference later in the day.

USD/CAD was trading at 1.2257 from around 1.2067 ahead of the announcement.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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