06:43:56 EDT Fri 29 Mar 2024
Enter Symbol
or Name
USA
CA



Bank of Nova Scotia
Symbol BNS
Shares Issued 1,201,922,504
Close 2017-07-12 C$ 78.62
Market Cap C$ 94,495,147,264
Recent Sedar Documents

Globe says TD, rivals boost prime rates after BOC hike

2017-07-13 07:08 ET - In the News

See In the News (C-TD) Toronto-Dominion Bank

The Globe and Mail reports in its Thursday, July 13, edition that on Wednesday the Bank of Canada raised its key overnight lending rate by 25 basis points, which led the Big Six banks to raise their prime lending rates to 2.95 per cent from 2.7 per cent, effective Thursday. The Globe's Tim Shufelt and James Bradshaw write that the higher prime rate will immediately result in additional borrowing costs on products like variable-rate mortgages, home equity lines of credit, and other credit lines. The rise in rates will help boost bank profits earned on loan portfolios by providing better margins. RateHub.ca co-founder James Laird says: "Borrowers should be prepared for rates to continue to push up toward historic norms. We're still in an abnormally low interest-rate environment." Meanwhile, Canadian savers with little debt who are hoping to finally start to earn decent returns on savings may have to continue to be patient. Mr. Laird says returns on deposits not linked to prime rates are typically much slower to respond to a rising rate environment. He says, "They're much quicker to pass along the hike when they're the ones collecting the interest, rather than when they're the ones paying it."

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