The Bank of Canada announced this morning that the key interest rate has been reduced to 4.75 per cent.

The announcement, made by BOC Governor Tiff Macklem, is an indication that the Bank of Canada believes Canada’s inflation rate is nearing an acceptable rate. The BOC has an inflation target of two per cent and the inflation rate in April was 2.7 per cent.

The reduction in the key interest rate is the first cut in over four years.

To read the BOC statement about the reduction, click HERE.

To read a story by Barbara Schecter of the Financial Post, click HERE.