India, Jan. 29 -- The Canadian dollar declined against its major counterparts in the New York session on Wednesday, as the Bank of Canada lowered interest rates by a quarter point, noting consumer price inflation remains close to 2 percent and the economy is in excess supply.
After cutting rates by 50 basis points at each of its two previous meetings, the BoC decided to lower the overnight rate by 25 basis points to 3 percent, with the Bank Rate at 3.25 percent and the deposit rate at 2.95 percent.
"Lower interest rates are boosting household spending and, in the outlook published today, the economy is expected to strengthen gradually and inflation to stay close to target," the Bank of Canada said. "However, if broad-based and significant...