BMO Financial Group Increases US$ Prime Lending Rate to 7.50 Percent

Rhea-AI Summary

BMO Financial Group announced an increase in its US prime lending rate from 7.00% to 7.50%, effective December 15, 2022. This adjustment reflects the bank's response to ongoing economic conditions. BMO is a major financial services provider in North America, holding $1.14 trillion in total assets as of October 31, 2022, and serves around 12 million customers.

Positive

• Increase in prime lending rate may enhance BMO's interest income.

Negative

• Higher lending rates could deter borrowing and slow down economic activity.

CHICAGO, Dec. 14, 2022 /PRNewswire/ - BMO Financial Group today announced that it is increasing its US$ prime lending rate from 7.00 percent to 7.50 percent, effective December 15, 2022.

About BMO Financial Group
Serving customers for 200 years and counting, BMO is a highly diversified financial services provider - the 8th largest bank, by assets, in North America. With total assets of $1.14 trillion as of October 31, 2022, and a team of diverse and highly engaged employees, BMO provides a broad range of personal and commercial banking, wealth management and investment banking products and services to 12 million customers and conducts business through three operating groups: Personal and Commercial Banking, BMO Wealth Management and BMO Capital Markets.

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SOURCE BMO Financial Group

FAQ

What is BMO's new prime lending rate?

BMO's new prime lending rate is 7.50%, effective December 15, 2022.

When will BMO's prime lending rate increase take effect?

The increase will take effect on December 15, 2022.

How does the prime lending rate affect BMO customers?

The prime lending rate affects the interest rates on loans, potentially increasing borrowing costs for customers.

What are the implications of BMO raising its prime lending rate?

Raising the prime lending rate may improve interest income for BMO but could also reduce borrowing demand.