The Bank of Canada has cut its main interest rate by half a percentage point to one per cent, which is the lowest in its history.
The cut was made in an effort to jump start the economy and stimulate lending to consumers and businesses.
The central bank has slashed 1.5 percentage points from its rate since October.
ATB Financial in Edmonton said the goal is to reduce rates and at most banks that will happen Wednesday morning, but it does not mean consumer rates will match the Bank of Canada.
"You don't necessarily see prime plus or minus deposits, so it's really the marketplace for deposits that runs the price for loans," said Dave Mowet with ATB Financial. "The cost of borrowing is definitely coming down and it's having an impact in the country for sure."
Mowet said prime at the Alberta Treasury Branch will be three per cent.
