BMO Announces Reduction of US Prime Lending Rate to 7.00 Percent Effective October 30, 2025

BMO Lowers US Prime Lending Rate to 7.00%

In a recent announcement that impacts many borrowers, BMO Financial Group confirmed a reduction in its US prime lending rate from 7.25% to a new rate of 7.00%. This change will take effect on October 30, 2025. This modification represents an important decision aimed at fostering a more favorable lending environment while providing customers with enhanced opportunity for financial engagements.

The Impact of the Rate Reduction

The prime rate, often seen as a benchmark for various loans and credit products, directly influences personal and commercial lending rates. With the prime rate now set at 7.00%, customers can expect lower interest charges on variable-rate loans, lines of credit, and credit cards. This move is likely to ease borrowing costs for individuals and businesses, spurring growth initiatives in various sectors.

BMO's decision to lower the prime rate comes amid ongoing discussions about economic conditions and the need for firms and consumers to manage debt effectively. By reducing this rate, BMO aims to support economic activity and ensure that its clients continue to benefit from accessible financing options.

About BMO Financial Group

BMO Financial Group stands as one of the prestigious banking institutions in North America, ranked as the seventh-largest bank by assets, which reached a staggering $1.4 trillion as of July 31, 2025. BMO has been operating for 200 years, serving around 13 million clients across Canada, the United States, and select global markets. This longstanding institution offers a wide array of financial products such as personal and commercial banking, wealth management, investment banking services, and global markets products.

With a mission centered around 'Boldly Growing the Good in business and life,' BMO is committed to contributing positively to society by fostering an inclusive economy, advocating for sustainability, and driving social progress. It is this forward-thinking approach that enables BMO to adapt and respond effectively to changing economic landscapes.

Future Outlook

As the financial sector continues to navigate new challenges and opportunities in the coming years, BMO’s reduction of the prime lending rate marks a strategic step in ensuring continued support for consumers and businesses alike. With lower borrowing costs, enhanced accessibility to credit, and a focus on community growth, BMO is poised to contribute significantly to economic advancement.

Customers are encouraged to stay informed about how these changes may affect their financial decisions and explore the variety of products and services that BMO offers to meet their needs.

For additional information about BMO’s products or services, clients are invited to reach out through their banking platforms or visit the official BMO website.