Fed cuts Rates across the board

You may have heard that the Federal Reserve and many other global central banks cut their interest rates yesterday in an attempt to entice more loans and therefore put a little spark back into the economy.  Below is a quick summary of what was done.

·        Fed cut it’s rates from 2% to 1.5%

·        Bank of England reduced from 5% to 4.5%

·        European Central Bank from 4.25% to 3.75%

·        Central banks of China, Canada,  Sweden and Switzerland also had rate cuts

·        Locally, as a result of the Fed’s cuts, All Local banks cut their prime rate from 5% to 4.5%

 

Again, all good news if you are thinking of taking a loan out in the near future!  This will initially help your Credit Card and Car Loan rates and as we move forward Long Term Debt (such as Mortgage Loans) should have a positive reflection.

Stay tuned because times are changing and changing swiftly