Cut In Bank Rate

January 20, 2009

 Mortgage news report by Vancouver Home Mortgage:

The Bank of Canada has trimmed it’s overnight target rate by 1/2%.  That puts it at 1.00%, an all-time low.

OTTAWA – The Bank of Canada today announced that it is lowering its target for the overnight rate by one-half of a percentage point to 1 per cent. The operating band for the overnight rate is correspondingly lowered, and the Bank Rate is now 1 1/4 per cent.

The outlook for the global economy has deteriorated since the Bank’s December interest rate announcement, with the intensifying financial crisis spilling over into real economic activity. Heightened uncertainty is undermining business and household confidence worldwide and further eroding domestic demand. Major advanced economies, including Canada’s, are now in recession and emerging-market economies are increasingly affected. Energy prices have fallen as a result of substantially weaker global demand.

Read the full report here…

BMO, RBC, TD, CIBC, and Scotia Bank followed the rate cut in reducing their prime rates to 3.00% as well. This rate reduction will be be applauded by borrowers.

The Bank of Canada has now cut rates by a total of 3.50% in the last 13 months. The Bank’s next scheduled interest rate announcement is March 3.

Click here for current discounted rates available from The Mortgage Group.

Kindly contact me (Elsie Tse) at 604-716-3369 or Email Me 

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