Sheryl King, an economist at Bank of America Merril Lynch, said in a note that the volatility hitting Europe and the risk of damage to the global economy means the Bank of Canada will move to cut its benchmark interest rate to ward off the risk of recession.With the Eurozone sovereign debt and banking crisis showing no sign of containment, some economists think the Bank of Canada will cut rates back to the effective lower bound of 25 basis points (0.25%) early next year.
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