Another big interest rate cut just announced by Bank of Canada [Video]

The Bank of Canada announced another interest rate cut on Wednesday.

The bank reduced its target for the overnight rate by 50-basis points to 3.25 per cent on Wednesday.

This is the fifth consecutive reduction since June as the bank continues its policy of balance sheet normalization, the Bank of Canada said in a press release Wednesday morning.

Governor Tiff Macklem said in his prepared statement that the central bank opted for two large rate cuts in a row because economic growth doesn’t need to be restricted anymore, now that inflation is back at its target.

However, he signalled that the central bank will likely slow down the pace of cuts.

“The governing council has reduced the policy rate substantially since June, and those cuts will work their way through the economy,” Macklem said.

“With the policy rate now substantially lower, we anticipate a more gradual approach to monetary policy if the economy evolves broadly as expected.”

With …