Bank of Canada cuts key interest rate for third consecutive time

By Mike Le Couteur Senior Political Correspondent, CTV National News

The Bank of Canada has lowered its key interest rate by 25 basis points to 4.25 per cent.

It’s the third cut since June, and the first time the central bank has posted three consecutive reductions since the global financial crisis in 2009. Governor Tiff Macklem says if the economy continues to improve, Canadians can expect more rate cuts later this year. The next rate update is scheduled for Oct. 23.

In remarks to reporters, Macklem said the Canadian economy grew by 2.1 per cent in the second quarter of this year. The gain, led by government spending and business investment, was slightly higher than the central bank’s July forecast.

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