Canada’s big banks have cut their residential mortgage rates, likely for the last time in the foreseeable future, economists say.

The bank cut rates by one-tenth of a percentage point on mortgages terms ranging from one to 10 years.

That puts the rate for a five-year closed mortgage at 5.49 per cent at each of Canada’s major banks.

The Bank of Montreal, Royal Bank of Canada, TD Canada Trust, and Scotiabank announced reductions last week.

Canadian Imperial Bank of Commerce followed suit on Monday.

Long-term interest rates are falling because of concerns about the health of the global economy, coupled with the likelihood that the Bank of Canada will hold off on raising its key overnight rate until well into the second half of this year.

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