Consumption growth has been surprisingly strong in Q1 in Canada. Therefore, the Bank of Canada increased its policy interest rate by 25 basis points, which now stands at 5.00%.
| Bank of Canada |
Royal Bank of Canada Prime Rate |
| 5.00% 25 bps |
7.20% 25 bps |
Effective Thursday, July 13, 2023
- Click here to consult the press release issued by the Bank of Canada. You may also consult the latest Monetary Policy Report.
- The next Bank of Canada announcement will be on September 6, 2023.
On the savings side, as stipulated in the loan agreement, this increase will automatically impact the payments to be made by your clients with previously issued loans (RRSPs, RESPs and investment loans) as these loans are established according to the Royal Bank of Canada's prime rate which now stands at 7.20%1.
In addition, since iA Financial Group also uses this rate to establish policy loans on certain individual life insurance policies, these loans could be affected.
These adjustments are automatic, no action is required on your part or on your client's part.
High Interest Savings Account (HISA)
A simple, accessible and risk-free alternative!
| 4.45%2 |
In addition to providing security against volatility, the HISA offers a better return in a rising interest rate environment! Also, check out our competitive Guaranteed Interest Fund (GIF) rates. Visit ia.ca/fixed-income-investment-rate.
1 The annual interest rate changes automatically, without notice, whenever the prime rate changes.
2 Rates are reviewed weekly and are subject to change without notice.
