Canada’s six largest banks have prime lending rates after the eighth consecutive increase bank of canada benchmark interest rate.
The central bank’s target for the overnight rate now sits at 4.5 percent after a quarter-point increase on Wednesday.
The central bank’s policy rate sets borrowing rates for other lending institutions that qualify for Canadian consumer loans such as mortgages.
Following Wednesday’s decision, TD Bank, Scotiabank, BMO, RBC, CIBC and National Bank all raised their prime lending rate by 25 basis points to 6.7 percent.
This is the highest point for prime lending rates in Canada since 2001, according to data from RateSpy.com.
Believing that inflation is poised for a “significant decline”, the Bank of Canada signaled on Wednesday that it was ready for a pause after hiking its policy rate by 425 basis points.
