Kim little

Down to Earth Real Estate Advice


Canada -interest rate cut

Major central banks (across the world) slash rates in an extraordinary move to ease the global credit crisis. Central banks in Canada, the United States, Britain, the European Union, Sweden and Switzerland cut key lending rates by half a percentage point.

The move came after a sharp overnight drop in Asian markets and U.S. stock futures that threatened to spark another North American selloff Wednesday. The Dow Jones industrial average lost 508 points Tuesday, bringing down markets globally. Britain also was rattled by a deepening banking crisis, forcing the government to announce a $80-billion bailout package.

The Bank of Canada warned that the U.S. downturn and weakness among key trading partners is hurting Canada's exports. Plus, the domestic side of the economy is no longer on fire as commodity prices drop and the Canadian dollar slides, the bank noted.

Inflationary pressure is no longer an issue (according to the Bank of Canada) since demand from Canadian consumers and businesses is no longer strong. It is very interesting to note that the Bank of Canada (in their press release of today) also noted that this reduction in the overnight rate does not preclude them from perhaps decreasing the overnight rate further when next they meet on October 21, 2008.This rate drop should work it's way through to prime and will benefit variable rate clients.

 From Keith Baker from the Mortgage group.


Reciprocity Logo The data relating to real estate on this website comes in part from the MLS® Reciprocity program of either the Greater Vancouver REALTORS® (GVR), the Fraser Valley Real Estate Board (FVREB) or the Chilliwack and District Real Estate Board (CADREB). Real estate listings held by participating real estate firms are marked with the MLS® logo and detailed information about the listing includes the name of the listing agent. This representation is based in whole or part on data generated by either the GVR, the FVREB or the CADREB which assumes no responsibility for its accuracy. The materials contained on this page may not be reproduced without the express written consent of either the GVR, the FVREB or the CADREB.