Canada’s big banks increased their prime lending rates on Wednesday.
Hours after the Bank of Canada’s decision to increase its key interest rate 25 basis points to 0.75 per cent, Royal Bank (RY.TO), TD Bank (TD.TO), Bank of Nova Scotia (BNS.TO), CIBC (CM.TO), Bank of Montreal (BMO.TO), National Bank (NA.TO), Laurentian Bank, and HSBC Bank Canada all boosted their rates.
RBC was first to move, raising its prime rate 25 basis points higher to 2.95 per cent, effective July 13.
The rest followed suit with identical moves later in the afternoon.
Banks use the prime rate to help determine interest rates on various loans, including variable-rate mortgages.