Bank of Canada lowers overnight rate target by 1/2 percentage point to 1/2 per cent
Today, the Bank of Canada announced that it is lowering its target for the overnight rate by one-half of a percentage point to 1/2 per cent in what is expected to be the last such conventional easing from the Bank.
This aggressive move by the Bank of Canada stems from the continued presence of the world-wide credit crunch which has immobilized the global financial system and has led to a rather bleak outlook for the global economy. The expectation is that the stabilization of the global financial system has potential delays whilst the ambitious plans of some major countries will take some time to have the desired effect in addressing toxic assets and recapitalizing financial institutions. Added to this toxic mix is the fact that consumer and business confidence is extremely low. The effects of the recent aggressive monetary and fiscal policy actions in Canada and other major economies will begin to be felt in the second half of this year and will build through 2010.
The next scheduled date for announcing the overnight rate target is set for April 21, 2009.
You can view the full Bank of Canada announcement off my blog at www.mypowermortgage.com/blog
Homeowners, now might be a great time for you to refinance and take advantage of current low interest rates. For a complimentary analysis of your current mortgage product and to see whether it's worth your while to refinance, please contact me today!
Home buyers, get pre-approved today and secure a low pre-approved interest rate for up to four months.
Kind regards
Jacqueline Baker
Mortgage Broker
P | 604.724.6982
F | 604.922.3899
Dominion Lending Centres Total Mortgage and Leasing
1575 Marine Drive West Vancouver BC V7V 1H9
