本文发表在 rolia.net 枫下论坛U.S. Federal Reserve cuts key interest rate, Canadian dollar rises above 98 cents (U.S.)
Tuesday, September 18, 2007 - 05:20 PM
By: 680News staff and the Associated Press
Toronto - The U.S. Federal Reserve has cut a key interest rate for the first time in four years, using an aggressive reduction of half a percentage point, sending the Canadian dollar above 98 cents (U.S.), Tuesday.
The loonie rose as high as 98.74 cents in afternoon trading on the financial markets in Toronto before ending the trading day at 98.64 cents (U.S.).
In the U.S., the Fed announced it was reducing its target for the federal funds rate, the interest that banks charge each other, from 5.25 per cent to 4.75 per cent.
The half-point reduction was double the quarter-point move that many economists had been expecting.
The action was designed to boost economic growth by lowering borrowing costs for millions of consumers and businesses. Commercial banks were expected to quickly match the Fed's action by cutting their prime lending rate.
The prime rate has been at 8.25 per cent for the past 15 months.
Such a swift approach to bring the loonie on par with the U.S. dollar left many analysts speculating that Canada's currency could surpass its American counterpart within a matter of days.
The loonie had begun to rise more moderately early Monday on speculation that the Fed would cut rates by a quarter point. But, it really took flight in the afternoon after the U.S. central bank announced the rates would go down by a half point, double the anticipated cut.
The Bank of Canada, meanwhile, has kept its equivalent rates stable.
As a result, the spread between U.S. and Canadian rates has widened, making Canada a more attractive place for German, Japanese, American and other foreign investors to put their money.更多精彩文章及讨论，请光临枫下论坛 rolia.net
Tuesday, September 18, 2007 - 05:20 PM
By: 680News staff and the Associated Press
Toronto - The U.S. Federal Reserve has cut a key interest rate for the first time in four years, using an aggressive reduction of half a percentage point, sending the Canadian dollar above 98 cents (U.S.), Tuesday.
The loonie rose as high as 98.74 cents in afternoon trading on the financial markets in Toronto before ending the trading day at 98.64 cents (U.S.).
In the U.S., the Fed announced it was reducing its target for the federal funds rate, the interest that banks charge each other, from 5.25 per cent to 4.75 per cent.
The half-point reduction was double the quarter-point move that many economists had been expecting.
The action was designed to boost economic growth by lowering borrowing costs for millions of consumers and businesses. Commercial banks were expected to quickly match the Fed's action by cutting their prime lending rate.
The prime rate has been at 8.25 per cent for the past 15 months.
Such a swift approach to bring the loonie on par with the U.S. dollar left many analysts speculating that Canada's currency could surpass its American counterpart within a matter of days.
The loonie had begun to rise more moderately early Monday on speculation that the Fed would cut rates by a quarter point. But, it really took flight in the afternoon after the U.S. central bank announced the rates would go down by a half point, double the anticipated cut.
The Bank of Canada, meanwhile, has kept its equivalent rates stable.
As a result, the spread between U.S. and Canadian rates has widened, making Canada a more attractive place for German, Japanese, American and other foreign investors to put their money.更多精彩文章及讨论，请光临枫下论坛 rolia.net