The Bank of Canada cut its key overnight interest rate 25 basis points on Tuesday to 2.25 percent, as most analysts expected, to support demand and return inflation to its 2 percent target point by the end of 2005. "While external demand has been slightly stronger and final domestic demand in Canada slightly weaker than expected, the bank's outlook remains, on balance, unchanged," the Bank of Canada added in explaining why it eased monetary conditions. Economic data since the last 25 basis point cut on January 20 has been "broadly consistent" with the economic outlook the central bank laid out in its January Monetary Policy Report Update, the bank said. "As expected, core and total CPI (consumer price index) inflation in January moved significantly below the 2 percent inflation target," the Bank of Canada statement said. Tuesday's statement was more succinct than the January announcement and made no mention of the Canadian dollar's level nor of any forward-looking projections. The bank's next rate announcement is set for April 13.|||www.reuters.com