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The Bank of Canada’s bid to stimulate a sluggish economy with a surprise rate cut is getting no help from the nation’s big banks.

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By this time next week, Canadians borrowing for a home might be looking at the lowest rates in the country’s history as a result of the Bank of Canada’s rate cut.





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Toronto-Dominion Bank, Canada’s largest lender, says it has no plans to cut its prime rate to match the central bank’s move, keeping the rate linked to variable mortgages, car loans and other securities, at 3%. Other banks, including Royal Bank of Canada, are also holding off.

“Our decision not to change our prime rate at this time was carefully considered and is based on a number of factors, with the Bank of Canada’s overnight rate only being one of them,” spokesman Mohammed Nakhooda said in an e-mail statement.

The Bank of Canada unexpectedly lowered its overnight lending rate a quarter of a percentage point to 0.75% Wednesday as a plunge in the price of oil dims the outlook for the economy. Prime rates have traditionally moved in lock-step with the central bank’s benchmark level, though there’s been departures in the past.