Bank of Canada cuts Rate
In a surprise move, the Bank of Canada announced a cut in their key lending rate by ½%.
Following this announcement, the Bank of Nova Scotia, Bank of Montreal, RBC, CIBC, and TD Canada Trust said they will trim their prime lending rates by 25 basis points - meaning a quarter of a percentage point - effective Thursday (tomorrow). This will bring the prime rate to 4.5 per cent from 4.75 per cent.
The prime lending rate is what banks charge customers on short-term loans. Other interest rates, including certain mortgage rates, may be linked to the prime rate but set several points higher.
Economists believe further reductions will follow. The Bank of Canada's governors are scheduled to release their next interest rate decision on Oct. 21.
Stay tuned!
Sincerely,
Sara Kareer
Sales Representative
Century 21 Millennium Inc., Brokerage
tel: 905-450-8300
toll-free: 1-888-450-8301
Posted by Sara Kareer
on October 8, 2008