Royal Bank of Canada Stock Plunges 3.56% Amid Interest Rate Adjustments

On April 18, 2025, Royal Bank of Canada's stock experienced a significant drop of 3.56% in pre-market trading, reflecting a notable decline in investor sentiment.

This decline comes amidst a broader trend of interest rate adjustments within the banking sector. In April, several banks have lowered their long-term deposit interest rates, with reductions ranging from 5 basis points to 170 basis points. This move is part of a strategic effort to manage negative debt and reduce the cost of funding, as banks face increasing pressure on their net interest margins.

Analysts suggest that this trend is likely to continue as banks seek to optimize their cost structures and adapt to a changing interest rate environment. The focus on controlling negative debt and reducing high-cost deposits indicates a shift in banking strategy towards more precise and proactive management of liabilities.