Today numerous Canadian lenders matched the Bank of Canada’s interest rate cut. This has been the first time this has occurred in 3 months and will hopefully boost revenue for Canadian banks amid our recession.

According to Bloomberg the lenders included Canadian Imperial Bank of Commerce, Royal Bank of Canada, National Bank of Canada and Bank of Nova Scotia. These banks cut their prime lending rates to 3 percent from 3.5 percent. This now matches the central bank’s 0.50% cut. The article also states that the Bank of Montreal lowered its five-year variable mortgage rate by 50 basis points to 4 percent.

How will this affect domestic and Canadian CD Rates?

It’s too early to say how this may effect the Canadian CD rates, but if you compare our domestic CD rates with Canada’s you will see they are currently yielding fairly similar rates. Many CD rates in the US dipped slightly after the fed cut our rate to it’s current 0.25-0.50% range.

Now, you can obtain Canadian bank CD’s for between 3.0-4.75% depending on duration of CD and deposit amount. The US’s best CD rates yield between 2.0-4.0% depending on those same variables.

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