Canadian financial institutions have decided to lower their prime lending rates in response to the half percentage point decrease announced today by the Bank of Canada.
All of the Big Six banks, including RBC, TD, BMO, CIBC, Scotiabank, and National Bank, have confirmed that they will be reducing their prime rate to 5.45 percent, down from 5.95 percent, starting Thursday.
In addition to the major banks, other lenders such as Desjardins Group and Laurentian Bank have also announced cuts to their rates.
The Bank of Canada’s recent rate cut to 3.25 percent marks the fifth consecutive decrease this year, following a series of cuts that began in June when the key rate was at five percent.
Prime rates set by banks play a role in determining the cost of various loans, including variable-rate mortgages and lines of credit, whereas fixed mortgage rates are more influenced by the bond market.
Bank of Canada governor Tiff Macklem has indicated that Canadians should anticipate a slower pace of rate cuts in the future.
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