Canadian financial institutions are lowering their prime rates following the Bank of Canada’s cut to its key interest rate.
The central bank cut its key interest rate by a quarter of a percentage point to 4.5 percent on Wednesday.
The six major banks, namely RBC, TD, BMO, Scotiabank, CIBC and National Bank, have lowered their prime rate from 6.95 to 6.70%, as have Laurentian Bank and Desjardins.
This is the second cut this year, after the Bank of Canada and private banks lowered interest rates in June.
Prime rates help determine bank lending rates on everything from adjustable-rate mortgages to lines of credit.
The Bank of Canada’s next interest rate decision is scheduled for September 4.