Will the banks cut prime again to spur spring market?

Financial Post

The Bank of Canada left rates unchanged last Wednesday, leading to some speculation in the mortgage industry that the major banks might be pressured to lower their prime lending rates.  The decision to hold the line on further cuts to the central banks key lending level was widely expected by analysts, although many have not ruled out more easing by bank governor Stephen Poloz should economic conditions deteriorate.  When the central bank lowered its overnight lending rate by 25 basis points in January, the major banks were reluctant to pass on the cut but eventually ended up handing over a 15-basis point reduction to reduce prime to 2.85%.  Some people would like to see the other 10 basis points added to the mix.

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Michael James

Michael James

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CENTURY 21 Explorer Realty Inc., Brokerage*
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