Even though bond yields are taking a breather from their recent steady advance, the Royal Bank has seen fit to raise their fixed rates yet again. As of tomorrow their 5 year posted rate is increasing to 6.25% giving the discounted rate a 15 basis point rise to 4.85%.
My question is this....why do all the banks follow RBC? Just imagine if other lenders actually followed the free market system and determined their own rates based on their business parameters? Then consumers would have genuine choices in the market instead of the monopoly that is the Canadian banking system. Oh we receive praises from around the world for our banks, but there is a reason they are so profitable, we pay for it!!
My soapbox aside, be prepared for all the other members of our financial system to follow the leader and raise rates this week. Get those rate holds in place! Today's 4.59% may seem like a steal in a month or so the way things are heading!
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