Big banks raise prime lending rates to 6.7% after Bank of Canada hike

Click to play video: 'Bank of Canada raises key interest rate again, will pause further hikes'
Bank of Canada raises key interest rate again, will pause further hikes
The Bank of Canada's latest key interest rate raise is the eighth hike in less than a year. While it could be the last for some time, Canadians are still feeling the impact on a day-to-day basis, especially homeowners with variable rate mortgages. Aaron McArthur reports – Jan 25, 2023

Canada’s six biggest banks raised their prime lending rates following an eighth consecutive increase to the Bank of Canada’s benchmark interest rate.

The central bank’s target for the overnight rate now sits at 4.5 per cent following a quarter-point hike on Wednesday.

The central bank’s policy rate sets borrowing rates for other lending institutions, which feeds into terms for Canadian consumer loans like mortgages.

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After Wednesday’s decision, TD Bank, Scotiabank, BMO, RBC, CIBC and National Bank all raised their prime lending rate by 25 basis points to 6.7 per cent.

This marks the highest point for the prime lending rate in Canada since 2001, according to data from

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Believing inflation is set to “decline significantly,” the Bank of Canada signalled Wednesday that it was ready for a pause after 425 basis points of hikes to its policy rate.

Click to play video: 'Options for homeowners struggling with mortgage payments'
Options for homeowners struggling with mortgage payments

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