Big Banks Raise Prime Rates

On Wednesday the Bank of Canada raised their key lending rate by a quarter point to 1.25 per cent. The "Big Five" banks in Canada followed by moving their prime lending rates.

This represents the third time since last summer that the Bank of Canada moved their key lending rate.

As of today RBC, TD, Scotiabank, Bank of Montreal, and CIBC have a prime lending rate of 3.45 per cent.

This move will have an impact on what customers pay for for mortgages and personal loans.

The key lending rate is the specific interest rate that determines bank lending rates and the cost of credit for borrowers. The prime rate is the interest rate that commercial banks charge their most credit-worthy customers.