Important Rate Annoucement!!
IMPORTANT RATE ANNOUNCEMENT:
Bank of Canada Lowers Key Lending Rate Again; April 21, 2009
Major Canadian banks follow suit; reduce Prime Rate to 2.25%.
The Bank of Canada lowered the overnight lending rate by 25 bps, enabling financial institutions to decrease their Prime Rate to a new historic low of 2.25%.
The Bank of Canada has announced today that it has revised its recovery expectations for the Canadian and global economy and will reduce its overnight lending rate by another 25 bps to 0.25%. The BOC has also indicated that all indications point toward the rate to stay at this very low level until June 2010. The major Canadian banks have quickly announced that they will be passing that reduction to consumers by reducing their Prime Rate to 2.25% effective Wednesday, April 22nd. This will probably be the last interest rate cut by the Bank of Canada as the overnight rate is almost 0%; they are expected to announce their plan for quantitative easing on Thursday. The next rate announcement by the BOC if June 4, 2009.
