BIG BANKS RAIS­ING PRIME RATES

Calgary Herald - - FP CALGARY -

The cost of loans linked to the big bank prime rates are headed higher in the wake of the Bank of Canada’s de­ci­sion to raise its key in­ter­est rate tar­get by a quar­ter of a per­cent­age point. The Royal Bank of Canada, Bank of Mon­treal, CIBC and TD Canada Trust says they are rais­ing their prime rates by a quar­ter of a per­cent­age point af­ter the BoC de­ci­sion. The big four Cana­dian banks each raised their prime lend­ing rates to 3.95 per cent from 3.70 per cent, ef­fec­tive Thurs­day. The in­crease raises the cost of loans with in­ter­est rates linked to the prime rate such as vari­able-rate mort­gages and home eq­uity lines of credit. The Bank of Canada raised its key in­ter­est rate tar­get by a quar­ter of a per­cent­age point to 1.75 per cent. It was the fifth time since the sum­mer of 2017 that the BoC has raised the trend­set­ting rate.

THE CANA­DIAN PRESS

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