Canada's central bank cut its key interest rate by half a point on Wednesday, reducing it to 3.75 percent and offering further relief to borrowers as inflation cools.
Canada had held its benchmark rate steady for almost a year at 5.0 percent, the highest level in two decades, before initiating a cut in early June.
Following three consecutive quarter point cuts, most analysts had forecast more aggressive action for the bank's October announcement, after figures earlier this month showed inflation had dipped below two percent.
"With inflation now back around the 2% target, Governing Council decided to reduce the policy rate by 50 basis points to support economic growth," the Bank of Canada said in a statement.
"If the economy evolves broadly in line with our latest forecast, we expect to reduce the policy rate further," it added.
CIBC Economics analyst Avery Shenfeld said Wednesday's "outsized rate cut was a no-brainer."
"The statement plants a victory flag in the battle against inflation, which is now definitively expected to run around the two percent target," he added.
The central bank's move is likely to offer relief for homeowners, particularly those with variable rate mortgages, with the high cost of housing consistently ranked as a central concern for Canadians.