APRIL 21, 2009 -Today, the BANK OF CANADA announced that it is lowering the overnight rate by another ¼ of a percentage point. The operating band for the overnight rate is correspondingly lowered, and the Bank Rate is now ½ per cent.
Conditional on the outlook for inflation, the target overnight rate can be expected to remain at its current level until the end of the second quarter of 2010 in order to achieve the inflation target.
With the last announcement on March 9th, the financial institutions did drop their Bank Prime Lending rate by the same percentage as the overnight rate to 2.5%. We will have to see if the banks will do it again this time and drop the Bank Prime Lending rate by the ¼ percentage point to 2.25%.
Fixed rates have also decreased since the last Bank of Canada announcement. The lowest five year fixed rate currently available is a quick close special of 3.69% and the best variable rate is Prime + 0.75%.
The next Bank of Canada Rate Announcement will be on June 4th, 2009. We will keep you posted!
THINKING
ABOUT BUYING YOUR NEXT HOME IF THE TIME IS RIGHT...BECAUSE INTEREST RATES ARE THE BEST RIGHT NOW FOR MAKING THAT MOVE!!
HAVE ANY CLIENTS WHO ARE LOOKING TO INVEST IN CANADA...PLEASE REFER ME AND I WILL LOOK AFTER THEM.
MAYA GARG,
BROKER
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