The Bank of Canada lowered its interest rate by 50-basis points to 3.25 per cent on Wednesday but signalled a slower pace of rate cuts moving forward.

A major cut to the Bank of Canada’s key interest comes as welcome news to realtors and those holding variable rate mortgages – but it also signals a growing sense of uncertainty about the broader Canadian economy.

The 50 bp cut is the Bank's fifth consecutive drop in rates since June, and its second jumbo reduction in a row.