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Canada reduces benchmark rate



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Canada reduces benchmark rate



The Canadian economy expanded by 4.7 per cent in 2000, but showed clear signs of slowing in the fourth quarter. Gross domestic product grew just 2.6 per cent on an annualised basis in the final quarter last year, amid lower business investment and a cooling in consumer spending. However, the Bank of Canada remained optimistic that economic activity in Canada would rebound in the second half of 2001. The bank said the rate cut, recent tax cuts and rising disposable incomes would help underpin domestic demand.

Financial Times.

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