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c signals further cuts as interest rates fall to 4.25%

Latest reduction comes amid weak growth and pressures on housing affordability

The Bank of Canada has signalled that borrowing costs could fall further in the coming months, after rate-setters cut interest rates for the third time in a row on Wednesday.

The central bank lowered its benchmark interest rate by a quarter of a percentage point to 4.25 per cent, in line with expectations.

Its governor, Tiff Macklem, said after the decision that if inflation continued to fall back towards the central bank’s 2 per cent goal, then it was “reasonable to expect further cuts”.

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