Rise in interest rate hits millions of Canadians
There are around seven million Canadians who are enjoying variable interest rates for their property loan or for their borrowings from line of credit.
The present recession in the Canadian economy made consumers quite vulnerable where even a hike of quarter point could shake 700,000 Canadian and the effect could reach a million with a one percentage increase.
The Bank of Canada recently announced that it is maintaining its target for the overnight rate at 1/2 per cent since it was cut twice last year.
This bank rate was a determinant for big banks and non-banking financial companies while setting their prime rates for borrowers for variable rate mortgages and line of credit.
(Reporting by Chandan Som)
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