Well, although they took their time, the Canadian banks have indeed dropped their prime lending rate in response to yesterday's Bank of Canada rate cut. With the overnight rate at 3.00%, and bank prime at 4.75%, let's see what happens with online savings account rates. Will we see an ING rate below 3%?
In previous discussion about the impact of rate cuts on mortgage and loan rates, I've seen a lot of talk about LIBOR as a benchmark for the cost of lending. This seems to be a more universal version of a central bank interest rate, and I've heard reference to loans and mortgages that are actually indexed to LIBOR as opposed to bank prime.
I don't know a lot about this, so I put the question to you: do you know of any institutions in Canada that offer loans indexed directly to either LIBOR or the BoC rate?