The Bank of Canada has reduced its key interest rate to 3.75%, marking the first 50-basis-point cut since the pandemic. This larger-than-expected reduction comes as inflation has stabilized within target levels, and the bank aims to support sluggish economic growth. While the cut is welcome news for variable-rate mortgage holders, fixed-rate borrowers are less likely to see immediate relief. The central bank signaled that future rate cuts may follow, depending on economic data.
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