PrefBlog

The Bank of Canada announced today:

that it is lowering its target for the overnight rate by one-quarter of a percentage point to 2 1/4 per cent. The operating band for the overnight rate is correspondingly lowered, and the Bank Rate is now 2 1/2 per cent.

… and as a result:

• Scotia cut to 4.00%
• CIBC cut to 4.00%
• No announcement from Royal as of 5pm
• TD cut to 4.00%
• No announcement from BMO as of 5pm

Assuming that BMO & RY have simply misplaced their quill pens temporarily, this will be a smooth transmission of the Bank Rate cut – unlike last time. The Bank of Canada also announced today that $4-billion in 3-month money was auctioned off at 2.778% average yield, range of 2.55% to 3.00%.

This entry was posted on Tuesday, October 21st, 2008 at 5:11 pm and is filed under Canada Prime. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.