Today Bank of Canada Governor Cut Key Interest Rate by 1/2%
March 4th, 2008 Categories: First Time Buyers, Investing in Real Estate, Latest Real Estate Market News & Stats, Mortgages, Economics, Finance, Oakville Real Estate News
He said he would and he did.
Today, Mark Carney, the new Governor for the Bank of Canada announced an interest rate cut of 1/2% bringing the key rate to 3.5%.
He also indicated that further cuts will be needed to deal with a U.S. economy that is experiencing a deeper and more prolonged slowdown than previously projected.
First quarter stats show that Canada’s economy is already experiencing some of the spillover effect of subprime woes in the U.S.
The next meeting is scheduled for April 22nd, at which time there may be further cuts.
Meanwhile, also today, Australia’s central bank raised interest rates to a 12-year high in its fight to contain inflationary pressures in a booming economy fueled by Chinese hunger for resources
The increase in Australia was the second in two months and the 12th since 2002. It bucks the trend among other major central banks, which cut rates as the U.S. subprime meltdown hurt global growth.
“This adjustment was made in order to contain and reduce inflation over the medium term,” Glenn Stevens, governor of the Reserve Bank of Australia, said in a statement after raising the cash rate target 25 basis points to 7.25 percent.
NOTE FROM HILARY: NEED HELP DECIDING ON FINANCING OPTIONS? I’d be happy to explain things.
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