Episode 39 Transcript – Today’s rate decrease

Hi! You’re live with Jessi Johnson and this afternoon we are going to discuss the Bank of Canada’s lending rate. It is October 21st just after 12:30 in the afternoon. We were anticipating a half point drop from 2.5% to 2% where it’s actually only gone a quarter point. Regardless we still had a .75% decrease. We are at our lowest rate in four and a half years which is pretty amazing. Everybody was anticipating, mass speculation across the board, inflation due to the 700 billion dollar bailout in America and right now our inflation in Canada is just sitting over 2% which is generally the benchmark for concern. Generally when inflation gets too high or speculation for inflation gets too high, they will then increase the Bank of Canada lending rate which then affects prime to curb an inflation. Well that appears to be a concern of the past. My reason for mentioning this is, it appears the economy outweighs any concerns about inflation because they’ve obviously dropped the lending rate yet again.