Rates Slashed!

The Bank of Canada surprised some today by sharply cutting its key benchmark rate by 75 basis points (3/4 of a percent), at the high end of analyst predictions. This matches a 50 year low, last seen in 1958!

Ok, the central bank says Canada is entering a recession. On the other hand, this is positive news to homeowners with variable rate mortgages tied to prime before discounts disappeared and banks started quoted prime-plus. Some clients are enjoying prime minus 1% and prime minus 0.6% on their mortgages.