The Bank of Canada announced today, Wednesday, a reduction in the key interest rates by half a percentage point, which was consistent with most expectations after reducing the interest rate by a quarter of a percentage point three times in a row.

The bank stated that it decided to lower the target overnight rate by 50 basis points to 3.75% and reduced the central bank's interest rate by the same rate to 4% and the deposit rate to 3.75%.

The bank's decision to continue lowering interest rates came as the consumer price inflation rate sharply decreased from 2.7% last June to 1.6% last month.

The bank said in a statement, "With the inflation rate returning to the target level of around 2%, the Bank's Board of Governors decided to lower the key interest rate by 50 basis points to support economic growth and maintain inflation within the range of 1% to 3%."

The bank also mentioned that it expects to continue reducing interest rates in the upcoming period if economic growth is largely within expectations, while noting that the timing and pace of interest rate cuts will depend on incoming economic information and its effects on inflation expectations.