Big five banks raise prime rates as Poloz’s rate bump filters through economy
Canada's largest banks are passing on the higher cost of borrowing to their customers.
RBC (RY.TO) was first out of the gates, announcing shortly before 4pm ET on Thursday that it would raise its prime rate by 25 basis points to 3.20 per cent, effective Thursday.
TD (TD.TO), BMO (BMO.TO), CIBC (CM.TO) and Scotiabank (BNS.TO) all matched RBC within just over 30 minutes with equal moves to their prime rates, which affect variable rate products such as mortgages and lines of credit.
The chartered banks made their adjustments after the Bank of Canada boosted the target for its overnight rate to one per cent earlier on Wednesday. The overnight rate is the bank's main policy tool for influencing short-term rates.