Trafalgar (Oakville, ON)
Trafalgar (Oakville, ON) Real Estate News
Ginatest
Bank of Canada cuts rates by 0.25 percent
Gina Burgio (VERICO Designer Mortgages Inc.)

The Canadian Central Bank cut rates today by a quarter point to 2.25%.

This rate cut today by the Bank of Canada was left than the half point cut expected by some economists.  The reaction to this was also seen by the Canadian Dollar... falling to a three-year low following today's announcement.

It will be interesting to see how various Canadian financial institutions react today to the news... in terms of their prime rates and mortgage rates.

The Central Bank commented however that it would likely have to lower rates further to combat the effects of the global financial crisis.  "In line with the new outlook, some further monetary stimulus will likely be required to achieve the 2 percent inflation target over the medium term," the central bank said in a statement announcing the lowest overnight lending rate since September 2004.

The Bank of Canada also commented on the US Recession, stating, "The global economy appears to be heading into a mild recession, led by a US economy already in recession."

 

 Gina Burgio

Gina Burgio, Mortgage Agent
VERICO Designer Mortgages Inc.
Toll Free: 1-877-345-6265
Fax: 1-877-345-6256
Email: gina@ginaburgio.com

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Each VERICO Broker is an independent owner operator.

Gina Burgio

Gina Burgio, Mortgage Agent
VERICO Designer Mortgages Inc.
Toll Free: 1-877-345-6265
Fax: 1-877-345-6256
Email: gina@ginaburgio.com

VERICO LOGO

Each VERICO Broker is an independent owner operator.

Ginatest
Bankers around the world are making changes.
Gina Burgio (VERICO Designer Mortgages Inc.)

Bankers around the world went into miser mode Tuesday after the defeat of a U.S. bailout plan, pushing an interest rate they charge each other for quick cash to a record level.

The key bank-to-bank lending rate, the London interbank offered rate, known as LIBOR, soared to 4.05 per cent from 3.88 per cent for three-month U.S. dollar loans and to 6.88 per cent for overnight dollar loans, the highest level since tracking began in 2001.

That is especially worrisome because LIBOR normally is just slightly above the U.S. Federal Reserve's target for the federal funds rate, an interbank lending rate. Now, it is more than four percentage points above the target rate of two per cent.

LIBOR, based on a daily survey of banks, is calculated by the British Bankers Association and announced at 11 a.m. London time every business day. It comes in 10 currencies and 15 terms, ranging from overnight to one year.

Financial contracts tied to LIBOR amount to more than $300 trillion US, or $45,000 US for every person in the world.

Gina Burgio

Gina Burgio, Mortgage Agent
VERICO Designer Mortgages Inc.
Toll Free: 1-877-345-6265
Fax: 1-877-345-6256
Email: gina@ginaburgio.com

VERICO LOGO

Each VERICO Broker is an independent owner operator.

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