Canada’s big five commercial banks have lowered their prime lending rates for a third time in four weeks.
Royal Bank of Canada (T.RY), Toronto-Dominion Bank (T.TD), Bank of Nova Scotia (T.BNS), Canadian Imperial Bank of Commerce (T.CM) and Bank of Montreal (T.BMO) have each cut their prime lending rates 50 basis points to 2.45% from 2.95%. The prime lending rate underpins variable-rate loans, including mortgages, and impact the cost of borrowing for a range of financial products.
The latest rate cut comes after the Bank of Canada reduced its benchmark overnight interest rate last Friday, dropping it to 0.25% amid the coronavirus outbreak. The latest interest rate reduction is the third significant cut to the prime rate in less than three weeks, following a pair of 50-basis-point cuts on March 16 and March 5.
