Bank Of Canada Cuts Rate By Half A Point

BANK OF CANADA CUTS RATES TO INSTITUTIONS
The Bank of Canada yesterday cut their overnight lending rate to 2.5% in order to stimulate economic growth and to assist the banks in cushioning them from the impact of a global market decline.
In just about every other country on earth that made the same move through their central banks, the banking industry responded by dropping lending rates to consumers by an equivalent amount…but not here in Canada.
In Canada our banks dropped lending rates by 1/4 of a percent and are now pocketing the difference, making Canadas’ banks even more profitable than they already were. The CEO of TD bank says that the cut was intended to shore up faltering banks….even though the government claims that is not the case and that no Canadian banks were overly exposed to the US subprime meltdown.
If Canadas’ economy is such an island of stability and success I wonder why the central bank would need to cut its’ rates to the banking system in Canada? And isn’t it kind of ugly to see the banks take advantage of those rate cuts at our expense?
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2 Comments

  1. BS
    Posted October 9, 2008 at 2:44 pm | Permalink

    lyimng rip off assholes

  2. Anonymous
    Posted October 11, 2008 at 9:11 am | Permalink

    The banks didn't need the rate cut. Flaherty & Harper needed the rate cut to buy votes.


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