Quote:
Originally Posted by The Fonz
Considering the situation we're in, wouldn't the government penalize lending institutions if they choose not to extend the discounts to their customers? Isn't the entire point of the BOC doing this, a measure to prevent further bleeding of our economy and citizens, which would be completely neutralized should the banks choose not to discount lending rates?
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Unfortunately, the government cannot force them to pass the discount. They can encourage it but this has happened in the past a couple of times.
The lenders are passing on the drops through their own Prime rate but have also adjusted their lending rates as well. Adjustments in the upward direction.
Fixed rates have risen approx. 0.60%
Variable rate discounts have disappeared pretty much from -1.00% to -0.15%... or 0.00% and even +0.25%.
This occurred back in 2008-09 as well.