WatchRBC follows Bank of Canada with quarter point hike to prime lending

Tag: Jemina

TORONTO — Royal Bank of Canada is boosting its prime lending rate by 25 basis points after the central bank hiked its benchmark interest rate today.The increase will bring RBC’s prime rate to 2.95 per cent from 2.7 per cent, effective Thursday.The prime lending rate is the rate that banks use to set interest rates for variable-rate mortgages and other loans.The move comes after the Bank of Canada raised its key interest rate for the first time in seven years on Wednesday to 0.75 per cent from 0.5 per cent.Which Canadian banks stand to gain the most from a rate hikeTop takeaways from Bank of Canada’s decision to hike rates todayRBC is likely just the first of Canada’s big banks to raise rates. Watch this space for updates.