Bank of Canada cuts interest rates as economy rolls into a recession

     Bank of Canada has reduced its interest rate down to 0.5% in order to encourage continued borrowing by businesses and consumers as the economy entered into a recession in the first half of the year. The Bank's estimate of national growth in 2015 is significantly lower than its April projection. The reduction in growth is believed to be the result of significant declines in oil industry investment in new projcts and also due to lower number of exports. The bank expects the economy to improve during the summer season and through the balance of 2015. The Central Bank's decision to reduce interest rates is expected to have a direct influence on private lending interest rates on items such as lines of credits and variable mortgage rates.