The Globe and Mail reports in its Thursday, March 13, edition that the Bank of Canada is penalizing savers by lowering its overnight rate by 0.25 percentage point, reducing interest for those who keep cash in savings accounts. The Globe's Rob Carrick writes that this reflects the complexities of trade war economics, where tariffs raise prices on U.S. goods, impacting Canadian consumers. The interest rate cut is intended to encourage borrowing and spending, but with the current trade tensions and an unpredictable U.S. president, it is risky for businesses and consumers to take on new debt. The rate cut also serves as a symbolic gesture; not cutting rates might be viewed as negligent. Some beneficiaries of rate declines include existing borrowers with variable-rate mortgages and lines of credit. Recently renewing a variable-rate mortgage? This rate reduction confirms your choice. Further BOC cuts could happen if the trade war impacts the economy, potentially lowering mortgage rates more. Fixed-rate mortgages are influenced primarily by bond market rates, which are impacted by trade war uncertainties regarding economic growth and inflation. Currently, fixed-rate mortgages are stable.