BANK OF CANADA RATE DECREASE
The Bank of Canada announced today that it is lowering its overnight rate by 1/4 percent. Major Banks in Canada traditionally follow and lower their rates accordingly, which would put their prime rates at 4.00%.
The Bank of Canada identified three major areas that will have an impact on our economy. The first is the tightening of global credit conditions and the global financial crunch. Additional concerns are the belief we are experiencing a global recession and the large decrease in commodity prices. These three factors are the reason they have lowered their rate today. The rate decrease is designed to combat a lower than expected inflation in Canada as a result of the above three developments. The July Monetary Report has inflation below the Bank's 2% target annually until 2010.
We are recommending clients stay in their variable rate mortgages. Our next date for an update from the Bank of Canada is scheduled for December 9, 2008.
Joe Samson, a Calgary REALTOR ® who has been helping clients to achieve their goals in the Calgary real estate market for many years now. Please visit some of his other web pages such as Evergreen real estate.
To Your Real Estate Success!
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Last updated on: 2012-05-17 00:22:34
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