TORONTO, Oct. 10 /CNW/ - CIBC today announced that is lowering its prime
lending rate by 15 basis points from 4.50 to 4.35 per cent effective Tuesday,
October 14, 2008.
    CIBC's announcement follows the federal government's announcement this
morning that it will address Canadian banks' increased cost of borrowing by
purchasing up to $25 billion in insured mortgage pools through the Canada
Mortgage and Housing Corporation (CMHC).
    "CIBC is lowering its prime lending rate following the step taken by the
federal government today to reduce the cost of funds," said Sonia Baxendale,
CIBC's Senior Executive Vice-President of Retail Markets. "This action is
positive and we are pleased to be able to lower our prime lending rate for a
second time this week for the benefit of our clients."