RBC Royal Bank is decreasing its prime rate by 25 basis points from 5.45 per cent to 5.20 per cent, effective January 30, 2025.

Erste Group analysts downgraded Royal Bank of Canada shares listed on both the Toronto Stock Exchange (RY:CN) and the New York Stock Exchange (NYSE: RY) from Buy to Hold. The downgrade comes as the stock trades near its 52-week high of $128.

Here’s why any drop in Royal Bank stock in 2025 could be an opportunity for long-term investors to buy it at a bargain.