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Bank of Canada resorts to jumbo rate cut as growth falters

Slowdown prompts shift to 50bp reduction, with rate-setters saying borrowing costs are likely to fall further

The Bank of Canada has lowered interest rates by a bumper half a percentage point to 3.75 per cent, with rate-setters resorting to a bigger cut to boost weakening growth.

The widely expected cut was the fourth in a row by the G7 country’s central bank. However, earlier cuts had been of a smaller, quarter-point, margin.

Tiff Macklem, the governor of the Bank of Canada, told reporters there was “clear consensus” for a bigger cut this time.

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