Bank Of Canada Cuts Benchmark Rates On Deeper Slowdown In U.S. Economy

According to emerging reports, the Bank of Canada will be next in line among the host of global central banks to act in the midst of a troubled U.S. economy.

The central bank said on  Tuesday that it will decrease its overnight lending rates by 50 basis points. That will place the benchmark lending rate at 3 percent.

According to the bank, the Canadian economy is expected to grow by 1.4 percent in 2008 and increase 2.4 percent by next year.

The measure was determined after the bank forecasted a "deeper and more protracted slowdown in the U.S. economy," reports MarketWatch