Post by 15Stanmoreon Dec 11, 2024 1:03pm
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Post# 36356979
Bank of Canada drops Overnight rate by 50 bps.
Bank of Canada drops Overnight rate by 50 bps.As most folks expected the Bank of Canada made a further 1/2% cut to the overnight rate that should now see the banks drop their prime lending rates by the same amount. For borrowers who opted for variable rate loans, this will produce additional interest expense reductions, which includes the Long Term Debt carried by Progressive Planet. On the $6.5 million still outstanding a 50 bps drop translates into a $32,500 per annum drop in financing charges that drops immediately to an improved bottom line operating profit.
Every bit helps and tail winds are always welcome.