The Bank of Canada cut its overnight lending rate by half a percentage point to 0.5 per cent (the lowest ever), prompting most big banks to quickly match it by dropping their prime rates to 2.5 per cent.
So there’s a silver lining in all the economic carnage – at least my business line of credit is increasingly cheap to carry.
Translation as I understand it: a lot of supposedly smart people made surprisingly reckless decisions for short term profit and now we are all paying for it.
“Once the global financial system stabilizes and global growth recovers, the underlying strength of the Canadian economy and financial sector should ensure a more rapid recovery in Canada than in most other industrialized nations,” the Bank of Canada said.
Hope it’s true.