Bank of Canada Slashes Key Interest Rate
|Bank of Canada Slashes Key Interest Rate
The Bank of Canada slashed its key interest rate by half a percentage point today, as it warned of softer economic growth this year.
It's the second half-point cut in the last two months and brings the Bank of Canada's total rate reduction to 1½ percentage points since December 2007. Bank of Canada Governor Mark Carney has slashed rates by a full percentage point since he took over the top job in February.
The big banks were slow to lower their prime lending rates by a corresponding amount. But by late afternoon, they had all announced half-point reductions in their prime rates to 4.75 per cent, effective Wednesday.
A cut in the prime rate leads to immediate savings for those who have variable rate mortgages, lines of credit and other floating interest rate loans.
Source: CBC News