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Banks lower prime rates in line with Bank of Canada rate cut

Canadian financial institutions say they are lowering their prime lending rates to match the decrease announced by the Bank of Canada. The central bank lowered its key interest rate by a quarter percentage point Wednesday to 4.5 per cent.
Canadian Press
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Governor of the Bank of Canada Tiff Macklem participates in a news conference on the bank's interest rate announcement, and the release of the quarterly Monetary Policy Report, in Ottawa, on Wednesday, July 24, 2024. THE CANADIAN PRESS/Justin Tang

Canadian financial institutions say they are lowering their prime lending rates to match the decrease announced by the Bank of Canada.

The central bank lowered its key interest rate by a quarter percentage point Wednesday to 4.5 per cent.

All of the big six banks including RBC, TD, BMO, Scotiabank, CIBC and National Bank moved their prime rates to 6.70 per cent from 6.95 per cent, as did Laurentian Bank and Desjardins.

It marks the second decrease this year after the Bank of Canada and private banks moved interest rates lower in June.

Prime rates help determine lending rates from banks on everything from variable-rate mortgages to lines of credit.

The Bank of Canada's next scheduled interest rate decision is Sept. 4.

This report by The Canadian Press was first published July 24, 2024.

Companies in this story: (TSX:RY; TSX:BMO; TSX:TD: TSX:BNS; TSX:CM; TSX:NA; TSX:LB)

The Canadian Press