Bank of Canada shocks markets with cut in key interest rate

Breaking

Central bank sees 2015 economic growth of 2.1%, down from 2.4%, citing steep drop in oil prices

CBC News Posted: Jan 21, 2015 10:15 AM ET Last Updated: Jan 21, 2015 10:17 AM ET

The Bank of Canada surprised markets today by cutting its key overnight lending rate by a quarter of a percentage point. 

The rate had been at one per cent since September 2010. 

The central bank also scaled back its forecast for the country's economic growth this year, citing the steep plunge in oil prices.

It now sees 2015 growth of 2.1 per cent, down from 2.4 per cent.

More to come

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