Tuesday, December 9, 2008

Sorry, but didn't taxpayers just bail out the banks to the tune of $75 billion?

Banks fail to match rate cut – again


From Wednesday's Globe and Mail

December 9, 2008 at 8:32 PM EST

Canada's banks, squeezed by tight credit conditions, only passed two-thirds of the central bank's rate cut on to consumers, posing a challenge for Ottawa as the economy withers.

Each of the six largest banks decided Tuesday to lower their prime rate by 50 basis points, to 3.5 per cent, after the Bank of Canada cut its key rate by three-quarters of a percentage point.

The move continues a game of cat and mouse that began in October, when the central bank cut its rate by half a percentage point and the banks only reduced prime by a quarter point.

1 comment:

Dr Mike said...

The banks have one rule & one rule only , "look out for number one".

The idea of the rate cut was to encourage consumer spending since we are still wanting for an economic stimulus package from the Harper gov`t.

It is just a shame that greed has gotten in the way.

Dr Mike Popovich.