Cut in the key rate | Canadian banks lower their prime rates to 5.45%

(Toronto) Canadian financial institutions have signaled they are lowering their prime rates to match the cut unveiled by the Bank of Canada.

The central bank lowered its key rate by half a percentage point on Wednesday to 3.25%.

Major banks RBC, TD, BMO, CIBC, Scotia and National Bank announced that they were lowering their prime rate to 5.45%, from 5.95% previously, effective Thursday. Desjardins and the Laurentian Bank made the same announcement.

The Bank of Canada’s cut Wednesday marks the fifth consecutive reduction this year after it began lowering its key rate by 5% in June.

Bank prime rates help determine the cost of a range of loans, including adjustable-rate mortgages and lines of credit, while fixed mortgage rates are more influenced by the bond market.

Bank of Canada Governor Tiff Macklem announced Wednesday that Canadians should expect a slower pace of cuts in the future.