Banks cut prime rates but savers suffer

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The big banks have cut their prime rates after RBC became the first to make a move. The bank had already reduced its mortgage rate but the prime rate cut will also make a difference to other loan products. It stopped short of passing on the full 0.25 per cent reduction that the BoC made to its lending rate last week and cut 0.15 per cent. While borrowers may be rejoicing at the lower costs of their loans, for savers it’s not such good news; some lenders have already trimmed back the interest paid on savings and investment accounts, by the full 0.25 per cent of course.
  • Angela Wong-Liao - Invis on 2015-01-28 10:28:19 AM

    If the lenders cut their prime from 3% to 2.85% instead of 3% to 2.75% and yet they have reduced .25% from their investment interest rates. The lenders are actually making more profits now than before?

  • judy on 2015-01-28 1:27:07 PM

    The "voracious appetite for buying" the latest gadget, fashion, car, home by so many is in the long run being paid for by those who have played the "game" by the rules - showing restraint and saving!

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