As we expected earlier last month, Ottawa decided to cut their rates again. However, it is more than what one expected.
They cut their rates by 75 basis point or by 3/4%.
This is rather a drastic move for Canada but they had to admit we are entering a recession as Global economy situation is weakened.
Most of the major banks will follow the Ottawa’s plea to lowering the rates as one would expect.
However, we do not know how much of prime rate will be coming down from each 5 major banks.
For more detailed press release, visit the article.
John Hahn
TD Canada Trust Mortgage manager
www.VancouverTDmortgage.com
