Royal Bank increases prime rate after Bank of Canada’s interest rate hike

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RBC prime reprimand to rise to 2.95% on Thursday

CBC News Posted: Jul 12, 2017 1:33 PM ET Last Updated: Jul 12, 2017 1:33 PM ET

The Royal Bank of Canada was the first of Canada’s five oustandingliest financial institutions to announce an increase to its prime interest rate on Wednesday, tartly after the Bank of Canada increased its key interest rate.

Effective Thursday, RBC’s prime censure will rise in parallel with the Bank of Canada’s overnight sort, by 0.25 percentage points. The prime rate at the bank will be 2.95 per cent, up from 2.7 per cent.

A bank’s prime concerned about rate gets factored into a variety of loans, from variable-rate mortgages to yarns of credit. RBC customers with loans based on the prime rate last wishes as see an immediate increase in their interest payments.

Canada’s major banks minister to to keep their prime interest rates in lockstep with each other. As of 1:00 p.m. ET on Wednesday, TD Bank, Bank of Montreal, CIBC, and Scotiabank had not yet notified any changes to their prime interest rates.

How a small interest scale change can cost you big1:36

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