On March 12, the Bank of Canada decided to reduce the policy rate from 3.0% to 2.75%.
With inflation around 2% and the economy in excess supply, Governing Council decided to reduce the policy rate a further 25 basis points to 3%. The cumulative reduction in the policy rate since last June is substantial. Lower interest rates are boosting household spending and, in the outlook published today, the economy is expected to strengthen gradually and inflation to stay close to target.
Effective rates on March 13
|
Bank of Canada |
Royal Bank of Canada Prime Rate |
| 2.75% |
4.95% |
Consult the press release issued by the Bank of Canada for more details.
Possible effects of these cuts on your clients’ savings
