The last interest rate drop is expected on March 3, 2009.  As least, that’s what the Big 5 Canadian Banks are forecasting (for now).  With the exception of BMO, the banks are expecting a 1/2% drop in the Bank of Canada overnight rate when the rate is reviewed on March 3, 2009.

Here is a summary of what the banks are saying:

• TD Economics – TD expects a rate cut of 1/2% in March 2009 - TD Economics Weekly Bottom Line dated February 27, 2009
• BMO favors a 1/4 percent rate cut – BMO Focus dated February 27, 2009
• RBC forecasts 1/2 percent drop – RBC Economics Financial Markets Monthly dated February 6, 2009
• CIBC Wood Gundy expects a 1/2% rate reduction – CIBC World Markets The Week Ahead (Market Call) dated March 2-3, 2009
• Scotia is forecasing a 1/2% drop in the BoC rate for 2009 – Scotia’s Global Forecast Update dated February 2, 2009.

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