Bank of Canada Cuts Interest Rates. Will Toronto Home Buyers Find Their Confidence?
April 21st, 2009 Categories: Money Matters, News Wire
The Bank of Canada has just announced that its key lending rate (the target for the overnight rate) has been cut by 25 basis points to 0.25%. And that conditional on the inflation outlook, commits to hold it there until the second quarter of 2010. The Bank Rate (the rate at which the Bank will lend money overnight to financial institutions) is correspondingly lowered to 0.50%. The deposit rate is left unchanged at 0.25% (can’t be reduced to zero!) and provides the floor for the overnight rate.
My most recent Market Reports and Mid-Month Statistics always mention “near-record low interest rates” as one of the compelling reasons for buyers to find their Confidence and find Opportunity in the Toronto real estate market.
Going forward, I’ll have to change that to “record low interest rates”, as the target rate is now the lowest since the central bank was founded in 1934 and the lowest it can go.
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It is really a good news for the canadian that bank cuts the interest rate. It will must be appreciated by the people of Canada.
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