Big banks raise prime rate after Bank of Canada interest rate increase

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The Royal Bank of Canada, Toronto-Dominion Bank, the Bank of Montreal, the Canadian Imperial Bank of Commerce, Bank of Nova Scotia and the National Bank of Canada have hiked their prime rates by 25 basis points to 6.7 per cent in response to the Bank of Canada’s latest policy rate increase.

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RBC, TD, BMO, CIBC, Scotiabank and National Bank announced the change the afternoon of Jan. 25. The central bank boosted its policy rate 25 basis point to 4.5 per cent earlier in the day.

Canada’s big banks have been quick to hike their prime rates following the Bank of Canada’s moves.

RBC’s prime rate stood at 2.45 per cent on March 2, 2022, the day the Bank of Canada embarked on the current rate-hiking cycle.