Not here, but I know we're seeing it overseas.

It has never happened in Canada.

You know, we've been around 1% of the low, but getting close again to that wouldn't drop it.

50 basis point cut to one and 1/4 percent of the benchmark 3.45% is the prime lending rate.

This morning at the big banks, they actually moved a full 50 which was actually a bit of a surprise during the financial crisis.

The banks were sort of hesitant to match in lockstep with the Bank of Canada was doing in this case, they're going 50 basis points down, and that'll save on a $400,000 mortgage of its variable around 100 100 and $20 a month.

It's not.

It's not insignificant.

No, it's it's noticeable.

Should we be concerned, though, that they're doing this while here's the thing, it's there trying to be proactive too, you know, because they know that the Corona virus is a risk to the economy. 00:00:59.610 --> 00:01:6.510 The criticism criticism is that the average consumer is seeing this and going What, what are they so worried about? 00:01:6.510 --> 00:01:7.510 Why are they panicking? 00:01:7.820 --> 00:01:14.120 And and that has a negative impact on consumer confidence, right, which is what they're trying to stabilize.

So it's, you know, not exactly a situation where there's an easy solution to it.

Could they have gone maybe 25 basis points yesterday and then another 25 next month when they meet again?

That that was possible to Bank of Canada Governor Stephen Pollan is in the city this afternoon actually giving a speech in the downtown core and will be asked that specifically.

And of course, what is this?

What does this mean for the housing market?

Well, that's the big thing, right?

But, you know, they're saying, Well, this will just ah, fuel add fuel to the fire in it. 00:01:45.840 --> 00:02:3.800 Might you know, again, it's it's a significant reduction, but if you're basing your purchases specifically on interest rates, and so it's questionable to begin with, so you know it's likely going to just be another thing that will help the real estate market to the upside this spring. 00:02:4.140 --> 00:02:5.080 All right, Mike. 00:02:5.090 --> 00:02:5.530 Thank you, sir. 00:02:5.530 --> 00:02:6.400 Have yourself a great day. 00:02:6.410 --> 00:02:6.850 You're welcome.