Newspaper article The Canadian Press

Canadian Banks Raise Prime Lending Rate to 3.45% in Wake of Bank of Canada Move

Newspaper article The Canadian Press

Canadian Banks Raise Prime Lending Rate to 3.45% in Wake of Bank of Canada Move

Article excerpt

Big Canadian banks raise prime lending rate

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TORONTO - Canada's biggest banks will hike their prime rate by a quarter of a percentage point on Thursday, putting financial pressure on homeowners with variable rate mortgages.

The Royal Bank of Canada (TSX:RY) was first to announce its prime rate will rise to 3.45 per cent, shortly after the Bank of Canada raised its key short-term rate by a quarter-point to 1.25 per cent.

RBC was followed by Bank of Montreal (TSX:BMO), CIBC (TSX:CM), Scotiabank (TSX:BNS), TD Canada Trust (TSX:TD), National Bank (TSX:NA), Desjardins Group, HSBC Bank Canada, Laurentian Bank of Canada (TSX:LB) and B2B Bank.

Banks tend to raise their own prime rates after the central bank raises its key lending rate, which affects wholesale borrowing costs for the major lenders and the retail borrowing rates they charge consumers. …

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