Bank of Canada reduces policy rate by 50 basis points to 3.75%

By Ovunc Kutlu

ISTANBUL (AA) - The Bank of Canada announced Wednesday it reduced its policy rate by 50 basis points to 3.75%, marking the fourth rate cut in more than four years.

The target for the overnight rate was lowered to 3.75%, with the bank rate at 4.0% and the deposit rate at 3.75%.

It is the fourth rate cut by the central bank since March 2020 when it lowered the policy rate by 25 basis points in response to economic conditions caused by the coronavirus pandemic.

"The Bank continues to expect the global economy to expand at a rate of about 3% over the next two years," it said in a statement.

"In Canada, the economy grew at around 2% in the first half of the year and we expect growth of 1¾% in the second half," it added.