Other banks around the world are following the Bank of Canada

this is an interesting report from RBC about the Bank of England reducing their prime rate by .5%
thanks
Mark

Highlights

Canada's economy crumbled in

late 2008, with real GDP contracting

at the fastest pace in 17 years.

The slumping labour market and

housing slowdown point to the

economy continuing to contract in

the first half of 2009.

The Bank cut the policy rate

again in early March and said it is

considering implementing quantitative

or credit easing to ensure

that monetary policy stimulus is

adequate.

The Bank of England (BoE) and

ECB also trimmed their policy rates

and the BoE launched a quantitative

easing program.

BoE cuts rates; announces quantitative easing plan

The BoE cut the policy rate by 50 basis points in early March to 0.5% and announced that it would purchase financial assets financed by the issuance of reserves. The details of the plan showed the BoE intends to buy both corporate debt and government bonds, with the majority of assets purchased being medium and long-term Treasury debt.

Recessionary conditions, globally and in the U.K., were deemed to threaten an undershooting of the 2% medium-term inflation target necessitating the aggressive policy actions.

In the Eurozone, the ECB cut its policy rate by 50 basis points to 1.5%, the lowest in its 10- year history. While there was no overt talk of quantitative easing, ECB President Trichet did not rule out using new "non-standard measures" as forecasts for growth and inflation were cut back.