
Your Money · Oct. 28
Rates just went up.
The Bank of Canada raised its key interest rate by a quarter point, from 2.25% to 2.5%, on Wednesday, Oct. 28. It’s the bank’s first rate hike since July 2023. Canada’s big banks are raising their prime rate to match, which means borrowing costs more for anyone with a variable-rate loan.
Who feels it
- RBC, TD and CIBC are raising their prime rate from 4.45% to 4.70%, starting Thursday, Oct. 29.
- Variable-rate mortgages and lines of credit tied to prime get more expensive. Example: $100,000 owing on a line of credit at prime costs about $21 more a month in interest.
- Fixed-rate mortgage? Your rate stays the same until you renew.
Why
- High oil prices tied to the war in the Middle East are pushing up costs. The bank wants to stop those costs spreading to the prices of everything else.
What’s next
- The bank says more hikes could be needed, but it will go carefully, one meeting at a time. Its next decision is Dec. 9.
Original reporting: Bank of Canada









