The Bank of Canada announced its first interest rate cut since March 2020

The Bank of Canada cut its benchmark interest rate by a quarter of a percentage point on Wednesday, a significant milestone in the central bank's efforts to curb inflation.The Bank of Canada's interest rate is now at 4.75% after six consecutive increases. Homeowners with variable rate mortgages, as well as Canadians with other types of debt linked to the central bank's interest rate, will see their interest rates drop immediately by 0.25%. Was.

The rate cut came as annual inflation eased significantly from a peak in 2022. Many economists, as well as financial market prospects, had expected the Bank of Canada to cut interest rates on Wednesday.

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