Bank of Canada sticks to talk of rate cut

Nathan Vanderklippe, Financial Post  Published: Tuesday, February 19,
2008

Mark Carney, governor of the Bank of Canada, took to the podium for his
inaugural speech and repeated -- virtually to the letter -- comments he
has previously made on the need for a cut to the bank's target overnight
lending rate.

"In line with our base-case projection and the associated risks, the
bank ... [has] said that further monetary stimulus is likely to be
required in the near term," he said.

"The timing and degree of that stimulus will be determined at future
fixed announcement dates, after we have conducted a thorough analysis
of, and applied our judgment to, all information at that time."

Economists read that statement as assurance the bank will trim at least
25 basis points -- if not 50 -- from the bank's target rate when it
makes its next announcement on March 4.