Posted AT 11:33 AM EST on 09/01/08
Canadian interest rates to tumble: Merrill
The Canadian economy is poised for a sharp slowdown as U.S. demand weakens and that, combined with cooling inflation, spell much lower interest rates in the coming year, Merrill Lynch Canada predicts.
Economist David Wolf sees a 125 basis-point cut in interest rates this year, which would bring the Bank of Canada's key lending rate to just 3 per cent.
It's a rather bleak outlook, and one that came the same day Goldman Sachs said the U.S.
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