'Unanticipated' events changed bank's outlook - Canada

[dArKeR]

Bank of Canada Governor David Dodge again slashed his forecast for growth, saying the economy has been hit by a combination of "unanticipated" events -- mad-cow, SARS and a rising dollar -- that have forced the central bank to reverse course on its removal of monetary stimulus.

In its monetary policy report update, the bank also said core inflation will likely slip below the 2 per cent target by the end of the year.

The bank cut its outlook for 2003 growth to 2 per cent in its update. In April, the bank had cut it to 2.5 per cent from 3 per cent.

The central bank stunned economists on Tuesday when it cut interest rates by a quarter percentage point to 3 per cent.

http://theglobeandmail.com/servlet/story/RTGAM.20030717.wbboc0717/BNStory/Business/

[CafeToad]

1. I was stunned by 9-11

Economists are stunned by a quarter point rate cut.

:eyes: :crazy: