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Prime lending rates at major Canadian banks rose across the board following the Bank of Canada’s latest oversized interest rate hike Wednesday.
RBC, TD Bank, BMO, CIBC, Scotiabank and National Bank all said since Wednesday that they have raised their prime rates to 6.45 per cent from the previous 5.95 per cent.
The moves mirror the 50-basis-point interest rate hike from the Bank of Canada on Wednesday, bringing its policy rate to 4.25 per cent.
The central bank’s key interest rate has jumped four percentage points over the course of seven increases in 2022, marking one of the tightest tightening cycles in its history.
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The Bank of Canada’s policy rate sets lending rates for major banking institutions and generally makes borrowing more expensive for Canadians with certain kinds of debt.
Commercial banks set prime lending rates as benchmarks for loans such as mortgage products offered to homeowners.
