The Bank of Canada cut interest rates by 50 basis points on Wednesday, cutting the base rate from 4.25 per cent to 3.75 per cent, the biggest cut in borrowing costs since the early days of the epidemic in March 2020. The Bank of Canada said it was a sign of the country's return to an era of low inflation. In response to soaring prices, the Bank of Canada previously raised interest rates to a 20-year high, but has cut rates four times in a row since June. Inflation fell to 1.6 per cent in September, below its 2 per cent target.