Canada’s big banks reduced their prime lending rates in the wake of the Bank of Canada’s unexpected move last week, but stopped short of matching the central bank’s quarter-percentage-point cut in a bid to protect profits.
Royal Bank of Canada was first to announce Tuesday that it would cut its rate by 0.15 percentage points to 2.85 per cent on Wednesday. Toronto-Dominion Bank, Bank of Montreal, Canadian Imperial Bank of Commerce, National Bank of Canada and Bank of Nova Scotia swiftly followed suit with identical cuts.
CBC banks lower prime lending rates
The Bank of Canada today announced that it is lowering its target for the overnight rate by one-quarter of one percentage point to 3/4 per cent. The Bank Rate is correspondingly 1 per cent and the deposit rate is 1/2 per cent. This decision is in response to the recent sharp drop in oil prices, which will be negative for growth and underlying inflation in Canada.