Banks cut prime rates but savers suffer
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.