Bank of Canada cuts key rate by 50 basis points in oversized step

The Bank of Canada delivered an oversized interest rate cut of half a percentage point on Wednesday, focusing now on boosting the Canadian economy amid signs inflation is well under control. The central bank’s policy rate now stands at 3.75 per cent. Wednesday’s decision is the fourth consecutive drop in interest rates since June and is the Bank of Canada’s largest rate cut since the global financial crisis in 2009, outside the COVID-19 pandemic. Anne Gaviola has the story.

• Bank of Canada worried jumbo rate cut would send sign of ‘economic trouble’
• Bank of Canada head says ‘shock-prone world’ shows need for productivity
• Will Bank of Canada’s big rate cut wake up ‘sluggish’ housing market?