The Financial Post reports in its Thursday, Sept. 7, edition that Canada's big five banks have begun hiking their prime lending rates after the Bank of Canada on Wednesday raised its target policy rate by 25 basis points to 1 per cent from 0.75 per cent. The Post's Drew Hasselback writes that the BOC said in a statement, "Recent economic data have been stronger than expected, supporting the bank's view that growth in Canada is becoming more broadly-based and self-sustaining." After the BOC's move, Royal Bank of Canada said it will increase its prime lending rate to 3.2 per cent from 2.95 per cent, effective Thursday. Bank of Montreal and the other banks also announced increases to their prime rates to 3.2 per cent. The prime rate increases are a sign Canada's big banks will pass on consumers the increase in the policy rate announced by the BOC. More Bank of Canada hikes could be on the way. The bank's statement strikes what several economists described as a "hawkish" tone, which means the bank is trying to tell the market that if the economy continues to outpace expectations and the data support a move, it is possible the BOC could bring in another rate hike before the end of the year.