Bank of Canada cuts interest rate, Prime @4.75%

As expected, The Bank of Canada slashed its key interest rate by half a percentage point and warned of softer economic growth this year. The central bank's key rate now stands at 3 per cent, a full 150 basis points lower than where it stood last fall. The overnight rate hasn't been that low since December 2005. Big banks would follow suit as they usually do and the prime rate will drop to 4.75 per cent soon. A cut in the prime rate leads to immediate savings for those who have variable rate mortgages, lines of credit and other floating interest rate loans.

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