Bank of Canada reduces interest to near zero

The Bank of Canada today reduced their key overnight rate to an all time low of .50%, essentially zero and the question is whether or no the banks will pass along this rate cut. In subsequent reductions the banks failed to pass on the full discount and if they had, the banks interest rate of prime 2.5% would be an additional .50% lower.

This being said, it apprears that with pressure from the comsumers they have decided to reduce their prime interest by the full .50% so most of the banks prime rate is now 2.5%.

 

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