Bank of Canada cuts key lending rate to 0.5 percent

Canada's central bank cut its key lending rate by a quarter-point to 0.5 percent Wednesday in a bid to stimulate an economy that fell into recession in the first half of the year.

It is the second time this year that the Bank of Canada has slashed rates to revive the economy -- badly hit by lower global oil prices -- after the central bank sprang a surprise on investors and households in January.

The Canadian dollar promptly slid further on the news.

"The Bank's estimate of growth in Canada in 2015 has been marked down considerably from its April projection," the Bank of Canada said in a statement, announcing its latest move. Borrowing rates were already at a historic low in a bid to re-energize the Canadian economy.

"Recent indicators suggest a rebound in the US economy in the second half of this year, and growth is expected to be solid through the projection," the bank said.

"In contrast, China is slowing amid an ongoing process of rebalancing to a more sustainable growth path.