Bank of Canada lowers overnight rate target by 1/4 percentage point to 1/4 per cent and, conditional on the inflation outlook, commits to hold current policy rate until the end of the second quarter of 2010.
April 21, 2009 Bank of Canada Press Release
Bank of Montreal was first to follow lowering it's prime rate to 2.25%
Royal Bank has also passed on savings by lowering prime to 2.25%
The other majors are expected to lower their prime to match.
Great news for variable rate mortgage holders, enjoy the low rates before they start climbing up, is there really any other way for them to go at this point? The question is when that will occur and how fast will they move. I cant imagine that will happen any time soon and Bank fo Canada signals it wont happen until some time next year.
1 comment:
As central banks of the world hit their panic button and slash the cost of capital to zero and try to stir up inflation by trying to devalue currency, they should be mindful of the fact that their credibility is coming into question. Quite possibly, the outcome of current global economic meltdown may be the death of central banks. I don't think anyone will mind in the end.
Lorne
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