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. ​

What Is The Current Prime Rate

Prime Rate is currently 6.70%.

What Influences Prime Rate And Why It Changes

Prime rate in Canada is influenced by changes in the Bank of Canada's target for the overnight rate. The Bank of Canada sets a target for the overnight rate, which is the rate at which major financial institutions borrow and lend one-day (or overnight) funds among themselves. The Bank of Canada's overnight rate target is the most influential factor for setting the prime rate in Canada. Other factors that influence the prime rate include the demand for funds in the financial markets, the Bank of Canada's inflation target, and the outlook for the economy.