The Bank of Canada made a significant cut to its key lending rate today from 4.25 per cent to 3.75 per cent. The half percentage point cut is the fourth rate cut in a row by the central bank as inflation dropped from 2.7 per cent in June to 1.6 per cent in September.

The central bank is expecting inflation to remain around two per cent in October. According to the bank, the Canadian economy grew by around two per cent in the first half of the year and is expected to grow by 1.75 per cent in the second half of 2024. Exports in Canada have also been boosted by the opening of the Trans Mountain Expansion pipeline.