Banks adjust prime rates again after latest BoC hike

Canada’s largest banks are increasing their prime interest rates by 50 basis points following the Bank of Canada’s rate hike on Wednesday.

The central bank raised its overnight interest rate by half a point to 3.75% as it attempts to tame stubbornly high inflation.

TD, RBC, BMO, CIBC, Scotiabank and Desjardins responded by raising their prime rates to 5.95% from 5.45% effective Oct. 27. Other banks are expected to follow, making loans such as variable-rate mortgages more expensive.

The Bank of Canada signalled Wednesday that it’s getting closer to the end of this rapid hiking cycle, but made it clear that more rate hikes are needed to cool inflation.

Staff

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