Thu. Jul 18th, 2024

RBC Leads Big Banks in Cutting Prime Rate to 6.95% Following Bank of Canada’s Rate Reduction

Royal Bank of Canada (RBC) announced on Wednesday that it is reducing its prime rate by 25 basis points, from 7.20% to 6.95%, effective June 6. This decision follows the Bank of Canada’s cut in its key interest rate from 5% to 4.75%, marking the first reduction since March 2020.

Other major banks, including Laurentian Bank of Canada, Fédération des caisses Desjardins du Québec, Toronto-Dominion Bank, Bank of Montreal, Canadian Imperial Bank of Commerce, and Equitable Bank, have also announced similar 25 basis point reductions in their prime rates.

This collective move by Canada’s largest banks aims to make borrowing more affordable for consumers and businesses in response to the central bank’s efforts to stimulate the economy.

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