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  #1  
Old 01-19-2009, 02:45 PM
trent trent is offline
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Default Canadian banks - will they lower interest rates?

With the expected interest rate cut tomorrow (/01/20/2009), do you think banks will pass the lower rate to consumers and Canadian businesses?
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Old 01-19-2009, 03:46 PM
Zephyr Zephyr is offline
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Originally Posted by trent View Post
With the expected interest rate cut tomorrow (/01/20/2009), do you think banks will pass the lower rate to consumers and Canadian businesses?
Probably not. They can't afford to do it. I think the interest rates will have to go up in the near future
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Old 01-20-2009, 03:35 PM
Canadian Canadian is offline
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They will pass them only partially. If the cut is 0.5% then they might offer 0.25% for example.
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Old 01-21-2009, 03:53 PM
Steven Steven is offline
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They will pass them only partially. If the cut is 0.5% then they might offer 0.25% for example.
I think that all big banks lowered their prime rates, by the same amount the Bank of Canada did. I'm also surprised, but I guess the banks got a lot of pressure from Flaherty and the conservative government to do so.
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Old 01-22-2009, 04:33 PM
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I think that all big banks lowered their prime rates, by the same amount the Bank of Canada did. I'm also surprised, but I guess the banks got a lot of pressure from Flaherty and the conservative government to do so.
They can lower rates to 0%, but if consumers are not willing to borrow more, then the banks and the establishment have a big problem.
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Old 01-26-2009, 09:45 PM
trent trent is offline
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They can lower rates to 0%, but if consumers are not willing to borrow more, then the banks and the establishment have a big problem.
The banks have a problem either way. If the consumers stop borrowing, then the economy is toast, because is based largely on debt versus savings. If the consumers keep on borrowing for a while longer, then the mountain of debt grows even higher and the pain will be even greater, albeit delayed.
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Old 01-27-2009, 08:33 PM
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Unfortunately you seem to be right.
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