Bank of Canada cuts rates by 25 basis points

Bank of Canada has cut it's overnight rate by 1/4 percent. We will have to see if the Canadian Banks respond and start lowering their fixed term mortgage lending rates. The Bank of Canada also indicated that we can expect further rate cuts to help deal with the drastic slowdown in the US economy.

For those interested the Bank of Canada will be publishing their full analysis on Thursday.

The Globe and Mail has what I feel is the best report on this rate decrease.