The Bank of Canada delivered an oversized interest rate cut of half a percentage point on Wednesday, picking up the pace of easing borrowing costs.
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.
“It’s been a long fight against inflation. But it’s worked,” said Macklem in press conference on Sunday.
“And I think Canadians can breathe a sigh of relief,” he added.
Macklem said that he expects Wednesday’s rate cut will lead to a boost in spending among both consumers and businesses.
The Bank of Canada’s final interest rate decision of the year is set for Dec. 11.
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