Bank of Canada cuts interest rates

The Bank of Canada (B-O-C) has cut its key interest rate for a fourth straight time.

In its biggest move in several years, the B-O-C has cut the rate by 50 basis points to 3.75 per cent.

Analysts say it shows Canada has returned to an era of low inflation.

B-O-C Governor Tiff Macklem says if the economy continues to evolve broadly in line with the central bank’s expectations, more interest rate cuts can be expected.