You obviously don't understand our capitalist system. The banks are free to set their prime interest rates and other rates at any level they want. Just because the Bank of Canada lowers its key rate does not mean that the chartered banks have to follow their lead There is no law in that regard. When Royal and TD raise or lower their rates, the others generally follow suit, because those are the two largest banks and almost always lead the way on the setting of interest rates. Higher rates may lead to bigger profits for the banks and maybe more dividend increases for their shareholders. That's a good thing, because bigger bank profits and higher dividends also mean more tax revenues for the federal and provincial governments.  Instead of complaining about the banks' profits, why not take advantage of them by owning their shares?