OTTAWA (July 16, 2003) — OTTAWA (July 16, 2003) — Yesterday’s quarter-point drop in the Bank of Canada’s trend-setting overnight interest rate will take pressure off trucking companies struggling with the effects of the appreciation of the Canadian dollar against U.S. currency, the Canadian Trucking Alliance said.

The bank cut its rate to 3 per cent from 3.25 per cent, in part to keep the rising value of the Canadian dollar in check and stimulate foreign demand for Canadian products.

CTA chief executive David Bradley was hoping for a 50 basis point cut.

“There is still a 200 basis point gap between Canadian and U.S. short-term interest rates, which gives the bank leeway for further reductions in September,” he said. “The important thing is that the bank has clearly signaled that it recognizes that the dollar has had a negative impact on the economy and that its policy bias is towards a further softening in interest rates which should have a moderating impact on the currency.”

Based in Ottawa, the CTA is the country’s largest lobby group for the trucking industry.