The country’s major banks are passing on the full weight of a 0.25 per cent increase from the Bank of Canada, despite the fact that on the way down consumers only received a portion of the central bank’s discounts.
When the Bank of Canada cut its interest rate down by 0.25%, the major banks in Canada cut their prime rates by only 0.15%. Yesterday, the BoC increased its rate by 0.25% and the Canadian banks increased the prime rate by 0.25%.
“It’s quite simply greed,” said Gaetano. “There is always a focus on profits and getting more money out of the pockets of Canadians. The last Bank of Canada decrease of 0.25 per cent only garnered a benefit of 0.15 per cent to Canadian borrowers. This happened the last two rate decreases.”
Wait, banks are obsessed with profits? Those bastards!