Prime Rate In Canada
Prime rate is the interest rate that banks charge their most creditworthy customers. It is typically used as a benchmark for other types of loans and is one of the most important rates in the banking industry. The prime rate is set by the Central Bank and is usually a few percentage points above the overnight lending rate.
Prime Rate is currently 7.20%
What Influences Prime Rate And Why It Changes
The prime rate in Canada is mainly influenced by the Bank of Canada's target for the overnight rate, which is the rate at which major financial institutions borrow and lend one-day funds among themselves. Other factors such as demand for funds, inflation target, and economic outlook also play a role.