The Bank of Canada promptly cut the interest rate at the beginning of the 2007-2009 global financial crisis, even though the recession did not actually begin until some months later.Which of the following is the rationale for this action?

Question

Quizplus · Accepted Answer

The rationale for the Bank of Canada's prompt interest rate cut at the beginning of the 2007-2009 global financial crisis was to quickly implement a new policy to address the looming crisis. This was a proactive measure intended to intervene in the market before the recession actually began.

The Bank of Canada Promptly Cut the Interest Rate at the Beginning