Major banks raise prime rates following Bank of Canada’s 1st hike in three years

Canada's Big Six banks have announced plans to raise their prime interest rates following a quarter-point increase by the Bank of Canada. The financial institutions, which include BNS, NA, BMO, RY, TD, and CM, have all increased their prime rates to 4.70 percent from 4.45 percent, effective October 29. Laurentian Bank and Desjardins Group have also committed to the same change.

The rise in prime rates will lead to higher costs for loans such as variable-rate mortgages and lines of credit that are tied to the benchmark rate. Earlier this week, the central bank hiked its key policy rate for the first time in over three years, setting it at 2.5 percent. This move aims to curb inflation, which had been holding steady for nearly a year following several reductions.