TORONTO — The Royal Bank of Canada is raising its prime rate by a quarter of a percentage point in the wake of the Bank of Canada’s decision to raise its key interest rate target.
RBC says its prime rate will climb to 3.95 per cent from 3.70 per cent, effective Thursday.
The increase will raise the cost of loans with interest rates linked to RBC’s prime rate such as variable-rate mortgages and home equity lines of credit.
The Bank of Canada raised its key interest rate target by a quarter of a percentage point to 1.75 per cent.
It was the fifth time since the summer of 2017 that the central bank has raised the trend-setting rate.
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The Canadian Press