The Bank of Canada cut interest rates to 1.00 percent, the lowest level ever for the 75 year old central bank and signaled that they could bring interest rates down to US levels. The historic move was motivated by the sharp downturn in the US economy and the continual slide in oil prices. Not only are Canadians making less, but they are seeing their household wealth plummet as well. The Canadian economy is not expected to grow in 2009, which is why more rate cuts are needed. The BoC is far from done and could realistically match US rates. Inflation is not a problem since they consumer prices are expected to be negative for the next 2 quarters