Bank of Canada drops key interest rate to 4.25%

Another interest rate cut from the Bank of Canada.

Its key rate dropped by 25 basis points to 4.25 percent.

It was widely believed the rate would drop again based on cooling inflation on both sides of the border.

The rate has gone down by 75 basis points since June.

The key interest rate sets the cost of borrowing on things like mortgages and loans.