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Bank of Canada Delivers Major Rate Cut: What This Means for Investors

The Bank of Canada has made a significant move, implementing a half-percentage-point interest rate cut, lowering the policy rate to 3.75%. This marks the fourth consecutive rate drop since June and is the largest rate cut we’ve seen outside the COVID-19 pandemic since the 2009 financial crisis. With inflation dropping below the Bank’s 2% target to 1.6%, the decision aligns with expectations from economists who predicted a more aggressive stance to stimulate economic growth.

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