Canadian banks may not match central bank cut

Some of Canada's biggest commercial banks say they are considering leaving borrowing rates unchanged even if, as expected, the Bank of Canada cuts rates next Tuesday.

The Globe and Mail, a Canadian newspaper, reported that unnamed commercial bank executives had said that the surge in borrowing costs resulting from the global credit crunch meant it could be difficult for them to match a central bank cut.

However, the newspaper said it was unlikely that the commercial banks could keep rates on

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