In the wake of the Bank of Canada’s move Wednesday to boost a key interest rate, Canada’s big banks have boosted their prime rates.
RBC was first off the mark, followed quickly by the others, raising their prime rates to 3.2 per cent from 2.95 per cent, where they had been since the central bank’s last rate increase in July.
Canadian consumers can expect to feel some financial effects following the Bank of Canada’s decision.
“It’s going to raise borrowing costs a little bit for everyone,” Eric Lascelles, chief economist at RBC Global Asset Management, told CBC News Network.
Here’s where and how consumers could feel the hike:
Consumers with variable-rate mortgages, also known as adjustable-rate mortgages, will feel the increase in the overnight rate quickly now that some financial institutions have begun pushing up their lending rates.
Read full story here: Big Banks Hike Prime Rates After Bank Of Canada Tightens Monetary Policy – Business – CBC News
