After the Bank of Canada hike, Desjardins raises its prime rate to 4.70%

Desjardins Group announced on October 28 that, effective October 29, 2026, the Fédération des caisses Desjardins du Québec's Canadian prime rate will rise from 4.45% to 4.70%, an increase of 0.25 percentage points.

Following the central bank's move the same day

The change follows the Bank of Canada's decision the same day to raise its policy rate from 2.25% to 2.50%, its first increase since July 2023. The central bank said the increase was needed to reduce the risk that elevated energy prices spill over into broader inflation.

What it means for borrowers

The prime rate is the benchmark rate banks charge their best-credit customers, and variable-rate loans and lines of credit typically move with it; fixed-rate loans are not directly affected by a change in prime on the day. Desjardins' announcement itself states only the prime-rate change and its effective date, and does not set out pricing for other specific loan products.