An executive of the fourth largest bank in Canada has confirmed the Bank of Montreal won’t be moving its prime lending rate amid the surprise rate cut the central bank recently announced.
Cam Fowler, head of Canadian personal and commercial banking, said the bank is not pressured to make a “splash”, following the Bank of Canada’s decision to slash the interest rate to 0.75% from 1%.
“We don’t make these moves to make a splash. We make these moves to run the business well and support our clients,” Fowler said. “We’re … clear on what the objective of the exercise was, you know, business growth, job creation, etc.”
Earlier this week, all of the country’s major banks decreased their prime lending rate from 3% to 2.85%.
“My hope is that everyone out there is taking a responsible approach to it,” he said, noting that it’s too early to know what the impact will be on the economy, loan growth, and mortgage demand.
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