The prime rate in Canada, as of December 11, 2024, is 5.45%, following a reduction after the Bank of Canada cut its overnight rate to 3.25%. The prime rate, influenced by the Bank's policy interest rate, affects variable interest rates on loans, including mortgages and lines of credit. Financial institutions typically offer rates based on the prime rate plus or minus a percentage, depending on various factors. The prime rate can change up to eight times a year, impacting borrowing costs and overall economic activity.
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