Big six lenders raise prime rates past 7% after Bank of Canada hike – National

After the Bank of Canada’s latest rate hike on Wednesday, the prime rates of Canada’s six largest banks rose in unison, further tightening credit access and borrowing costs for Canadians.

RBC, TD Bank, BMO, Scotiabank, CIBC and National Bank all raised their prime lending rates to 7.2% on Thursday.

That rose 25 basis points after a similar rate hike by the Bank of Canada, which raised its overnight rate target to 5.0% on Wednesday, the highest level in 22 years.

The central bank’s policy rate sets borrowing rates for other financial institutions and is reflected in the terms of Canadian consumer loans, such as mortgages.

Bank of Canada Governor Tiff Mackrem said Wednesday that central bank policymakers have decided at each meeting amid fears that the fall in inflation “could stall” on the way back to the 2% target. said it would drop the

Story continues below the ad

The central bank’s key rate has risen by a cumulative 4.75 percentage points since the rate hike cycle began in March 2022.

Canadians have expressed concern about how rising borrowing costs are affecting their livelihoods, with a recent poll conducted exclusively by Ipsos for Global News showing 10 Canadians It shows that seven out of 10 are worried that interest rates will rise faster than they can keep up.

Click to play video: 'Raising interest rates to 5% will help ease inflation: Macklem'

Raising interest rates to 5% could ease inflation: Mackrem

© 2023 Global News, a division of Corus Entertainment Inc.

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button