On the heels of the Bank of Canada cutting its benchmark rate, several banks said Wednesday afternoon that they were lowering their prime interest rates by 0.25 percentage points to 6.95 per cent.
It was the Royal Bank of Canada that got the ball rolling around 2:30 p.m., announcing in a press release that its prime rate was going from 7.20% to 6.95%. In the minutes that followed, Laurentian Bank, Scotiabank, CIBC, Bank of Montreal, Desjardins and TD Bank, in order, did the same.
The new prime rate will come into effect the day after the announcements, June 6.
Banks cut interest rates in response to the Bank of Canada’s announcement Wednesday morning that it is lowering its key rate by 0.25 percentage points to 4.75%.
“If inflation continues to moderate and the data continue to reinforce our confidence that it is moving toward the 2% target, it is reasonable to expect further rate cuts,” Central Bank Governor Tim Macklem said at a news conference Wednesday morning.