The Wednesday news briefing: An at-a-glance survey of some top stories
Highlights from the news file for Wednesday, July 12
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BANK OF CANADA HIKES INTEREST RATE TO 0.75 PER CENT: The Bank of Canada has hiked its benchmark interest rate to 0.75 per cent from 0.5 per cent, its first increase in nearly seven years, amid expectations of stronger economic growth this year. The Bank of Canada cut interest rates by a quarter of a percentage point twice in 2015 to help the economy deal with a plunge in oil prices, but governor Stephen Poloz said Wednesday that adjustment has been made. Canada’s five biggest banks are also boosting their prime lending rates by 25 basis points, following the rate hike. Royal Bank of Canada, the Bank of Montreal, TD Bank, Scotiabank and CIBC all announced Wednesday they are increasing their prime rates to 2.95 per cent from 2.7 per cent, effective Thursday. The prime lending rate is the rate that banks use to set interest rates for variable-rate mortgages and other loans.
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