Financial institutions begin lowering prime rates after Bank of Canada cuts key rate again

Canadian financial institutions are lowering their prime lending rates to match the half percentage point decrease announced today by the Bank of Canada.

 

All of the Big Six including Royal Bank of Canada, Toronto-Dominion Bank , Bank of Montreal, Canadian Imperial Bank of Commerce, Bank of Nova Scotia and National Bank of Canada said they are lowering their prime rate to 5.45 per cent, down from 5.95 per cent, effective Thursday.

 

Other lenders including Desjardins Group and Laurentian Bank also announced lower rates.

The Bank of Canada’s cut to 3.25 per cent marks the fifth consecutive decrease this year after it started lowering its key rate from five per cent in June.

 

Bank prime rates help determine the cost of a range of loans including variable-rate mortgages and lines of credit, while fixed mortgage rates are influenced more by the bond market.

 

Bank of Canada governor Tiff Macklem said that Canadians should expect a slower pace of cuts moving forward.

 

 

 

 

This article was first reported by The Canadian Press