Gina Burgio, Mortgage Agent

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Interest Rate Lowered to 1.50%

The Bank of Canada on Tuesday cut its key lending rate by 75 basis points to 1.50%, more than many economists had expected. This is the lowest since 1958.

Lower interest rates, if passed on by the commercial banks, encourage businesses and households to borrow and spend for expansion and consumer goods, thereby stimulating economic activity.

The interest rate cut today by the Bank of Canada was this biggest cut since October 2001.

The record low for Canada's key rate was 1.12 percent in 1958, a time when it was based on treasury yields rather than actions by policy makers.

The bank's next scheduled date for setting interest rates is Jan. 20.

Gina Burgio

Gina Burgio, Mortgage Agent
VERICO Designer Mortgages Inc.
Toll Free: 1-877-345-6265
Fax: 1-877-345-6256
Email: gina@ginaburgio.com

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Each VERICO Broker is an independent owner operator.

Gina Burgio

Gina Burgio, Mortgage Agent
VERICO Designer Mortgages Inc.
Toll Free: 1-877-345-6265
Fax: 1-877-345-6256
Email: gina@ginaburgio.com

VERICO LOGO

Each VERICO Broker is an independent owner operator.

Comment balloon 0 commentsGina Burgio • December 09 2008 10:01PM
Interest Rate Lowered to 1. 50%
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The Bank of Canada on Tuesday cut its key lending rate by 75 basis points to 1. 50% more than many economists had expected. This is the lowest since 1958. Lower interest rates, if passed on by the commercial banks, encourage businesses and… more
Bank of Canada Excepted to Lower Interest Rates
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Bank of Canada is expected to lower interest rates this Tuesday… many economists are forecasting a half-point chop to their bank rate to 1. 75 per cent the lowest since 1960. Interbank funding spreads have narrowed by more than half since… more