Bank of Canada Lowers Prime Lending Rates!

In a widely anticipated move, the Bank of Canada reduced its' Prime lending rate by 50 Bps in response to the recent signs of weakening economic conditions and following extremely weak economic figures for the fourth quarter of 2007.

With overwhelming evidence of deteriorating economic conditions in the United States, Canada cannot escape the fallout from the U.S. economic slump which has been a large contributor to the strenthening in the Canadian dollar and has led to weaker demand for Canadian exports. The Bank of Canada noted that "the deterioration in the economic and financial conditions in the United States can be expected to have significant spillover effects on the global economy".

Fortunately for Canadians, inflation in Canada is under control, thus providing the monetary authority the flexibility to lower rates now, with an anticpation of more rate cuts to come. This should help the Canadian economy weather the headwinds and fallout coming from the United States.

To take advantage of the lower rates and an alternate strategy to save you money on your mortgage costs today, contact Mary Wozny at 705-446-9791, email mwozny@mortgagealliance.com, or apply online today at www.MaryWozny.com.