Bank of Canada Lowers Key Interest Rate to 4.25 Percent

A sign at the Bank of Canada building is seen in Ottawa on July 24, 2024. The Canadian Press/Justin Tang

OTTAWA—The Bank of Canada reduced its key interest rate for the third time in 2024, bringing it down from 4.5 percent to 4.25 percent.

“Headline and core inflation have continued to ease as expected,” Bank of Canada governor Tiff Macklem said in his opening remarks announcing the rate change on Sept. 4.