The Bank of Canada this morning cut its key interest rate a quarter point to 4.75 per cent.
The first rate cut in more than four years comes as good news for would-be first time homebuyers and people with variable rate mortgages.
Governor Tiff Macklem says the central bank has more confidence inflation is moving closer to its two per cent target and that if inflation continues to slow, it is reasonable to expect further rate cuts.
But he says those decisions will be taken one meeting at a time.
The Bank is expected to make it’s next announcement regarding the rates in late July.
