The U.S. Federal Reserve slashed it’s key interest rate by 0.75% this morning–in emergency fashion. It was their biggest cut in over 23 years.
The Bank of Canada (BoC) also lowered its key interest rate 1/4% saying, “Further monetary stimulus is likely to be required in the near term.” That suggests they may cut again at their next meeting March 4.
The BoC also cut their economic growth estimates and acknowledged little threat of inflation.
I’m interested to see if the big banks cut prime to follow the BOC rate cut.
I’m with MDJ, I think if they decide to keep their primes up and not follow the BoC there will be a huge backlash.
I’m surprised at the cut stateside. That’s one hefty statement about the status of the economy there in general. I’m sure we will be feeling it soon too, I think it’s time for me to tighten the budget and get a good amount of cash sitting around.