FXstreet.com (Barcelona) - After yesterday's Q4 GDP report, it seems another rate cut by the Bank of Canada (BoC) was inevitable. This morning, the central bank obliged with a stronger-than-expected 50-basis point reduction of the overnight rate to a mere 0.50%.

This brings the total easing since the BoC started its current cycle in late-2007 to 400 basis points. And, according to the accompanying statement, it may not be the last cut.

In context, the BoC mentioned that if further monetary stimulus was required, the central bank could resort to its own form of credit and quantitative easing. The statement promised to elaborate on this in the BoC's Monetary Policy Report due out in April, and until then it would be watching indicators closely.

Hopefully, the BoC will make it clear in its April report that the quantitative easing plan is not due to a damaged economy in need of extraordinary priming but the continuation of stimulus once lower interest rates are not enough, said Northern Trust Economic Research Department.