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Banks lower prime rates to 5.95% after Bank of Canada move

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TORONTO — Canadian financial institutions say they are lowering their prime lending rates to match the decrease announced by the Bank of Canada.

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The central bank lowered its key interest rate by half a percentage point Wednesday to 3.75 per cent.

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All of the Big Six banks including RBC, TD, BMO, Scotiabank, CIBC and National Bank say they have lowered their prime rate to 5.95 per cent, down from 6.45 per cent, as has Desjardins.

It marks the fourth consecutive decrease this year after the Bank of Canada started pushing interest rates lower in June.

Bank prime rates help determine the cost of a range of loans including variable-rate mortgages and lines of credit.

The Bank of Canada’s next scheduled interest rate decision is Dec. 11.

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