The Bank of Canada is expected to lower its overnight lending rate by as much as a 0.50% tomorrow. If so, this will be the second time in two weeks that the Bank of Canada has taken action to lower rates as part of its efforts to help tame the global financial crisis.
Their overnight rate influences the prime lending rates charged by the chartered banks in Canada. It can affect borrowing costs on variable-rate mortgages and lines of credit.
It will be interesting to see how the Banks react. The last time the Bank of Canada announced a half-point cut on Oct8, not all the chartered banks passed on the full effect to customers.
Gina Burgio, Mortgage Agent
VERICO Designer Mortgages Inc.
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