The 10-Bips Cut in the Rate May Not Play a Lot to the Housing Market

The five-year loan prime rate was only reduced by 10 basis points last week. Some economists were looking for a larger cut as a way of engendering more enthusiasm for housing. Bloomberg Economics is saying that new home prices could gradually recover this year by the second half of the year. "We are now looking for a more cut in both the policy rates and also the TRIBAR"