www.AlphonseQ.com
CMHC will purchase $25 billion of insured mortgages from banks freeing up bank capital and allowing them to lend freely again. It appears to be working as several banks have reduced prime by another 25 basis points to now match the full 50 point drop in the Bank of Canada recently. Note that TD has dropped 15 basis points for now and some lenders have not adjusted their prime.