Understanding the Overnight Rate and Its Economic Impact

Overnight Rate - Definition, How It Works, Impact on Monetary Policy

🇨🇦 GOOD NEWS CANADA! The Bank of Canada has reduced the overnight rate to 2.25%, a 25 basis point cut, bringing the prime rate down to 4.45%! 📉 💡 Here’s what that means for you: 🏦 If you have a variable mortgage with banks like Scotia or National Bank, you’ll now save about $15 per $100K, that’s $150/month on a $1M mortgage! 💰 More of your payment now goes toward principal and less toward interest. ⚠️ However, if you’re with TD, RBC, or BMO, you might not see much change in your monthly pa