Borrowers revel in interest rate cut as the party ends for savers

A relief effort has begun for Canada’s debt-burdened households this week after the Bank of Canada announced a quarter per cent cut in three-decade-high interest rates.

With expectations for a series of cuts totalling two per cent, Mortgage Logic’s Robert McLister says the punch bowl is coming back for borrowers as the big banks respond by lowering their prime lending rates.

However, that punch bowl is being taken away from savers who have been drinking in higher yields on fixed income for nearly two years.

Fix income party coming to a close