Canadian financial institutions are lowering their prime lending rates to match the half percentage point decrease announced today by the Bank of Canada.
All of the Big Six including RBC, TD, BMO, CIBC, Scotiabank and National Bank said they are lowering their prime rate to 5.45 percent, down from 5.95 percent, effective Thursday.
Other lenders including Desjardins Group and Laurentian Bank also announced lower rates.
The Bank of Canada’s cut to 3.25 percent marks the fifth consecutive decrease this year after it started lowering its key rate from five percent in June.
Bank prime rates help determine the cost of a range of loans including variable-rate mortgages and lines of credit, while fixed mortgage rates are influenced more by the bond market.
Bank of Canada governor Tiff Macklem said that Canadians should expect a slower pace of cuts moving forward.
