Bank of Canada Slashes Interst Rate to Lowest In History

January 22, 2009 Interest Rates No Comments

In an effort to include more good news in my blog than bad I am pleased to show my readers an article that was forwarded to me by Brad Logel from Cardel Lifestyles.

These are interesting times and without out a doubt many of us will remember these as the some of the lowest rates we will see in our lifetime.

The article was initially published at CTV.ca on January 20, 2009.

Tue. Jan. 20 2009
CTV.ca News Staff

The Bank of Canada has cut its main interest rate by half a percentage point to one per cent, the lowest in its history, in an effort to jumpstart the economy and stimulate lending to consumers and businesses.

The bank’s previous lowest interest rate had been 1.12 per cent, last seen in 1958.
The central bank has slashed 1.5 percentage points from its rate since October, and 3.5 percentage points from its rate in the past 13 months.

…
“Stabilization of the global financial system is a precondition for economic recovery,” the statement read. “To that end, governments and central banks are taking bold and concerted policy actions. There are signs that these extraordinary measures are starting to gain traction, although it will take some time for financial conditions to normalize.”
Canada’s chartered banks had previously been reluctant to follow the central bank’s lead on interest rate cuts. In December, they passed on only two-thirds of Bank of Canada Governor Mark Carney’s cut of three-quarters of a percentage point.

However, after today’s announcement, the big banks – including Bank of Montreal, TD Canada Trust, Royal Bank of Canada and CIBC – cut their prime lending rates by half a percentage point.
The prime governs the rates on consumer loans and lines of credit, as well as some mortgages and other loans.

…
With files from The Canadian Press

Happy New Year!!!

January 15, 2009 Case Study, Credit, News No Comments

As of today most of us have been back in the office for a bit more than a week.  Our holiday binging is over and for the most part we are beginning to feel back to normal.

The New Year so far has been filled with doom and gloom from our media in Canada.   Sometimes it seems like they get paid some type of bonus for every bad news story they can publish.  So with all of this bad news coupled together with a credit card bill that we all are expecting in the next couple of weeks it is no wonder that we feel a little glum.

So this week I have two things I want to discuss.

Firstly I am going to suggest that we all make a concerted effort to pay down our consumer debt in the first quarter of 2009.   I am not a credit councilor but I know that paying down your high interest rate consumer debt is good place to start.

Secondly I am telling everyone I know that participating in the recession is a choice.  If people want to join The Sky Is Falling Club let them but you can make a choice not to join.  So in my case instead of feeling sorry for myself I have tripled my marketing this year and have worked hard to know where my money is going and to reduce my expenses.

I have made a commitment to end 2009 in a far better position than I entered it regardless what the media has to say about our economy.

I hope you join with me.

Happy New Year!!!