The Bank of Canada slashed its key policy rate by 50 basis points to 3.25% on Wednesday to help address slower growth, though Governor Tiff Macklem indicated that further cuts would be more gradual and said he does not expect a recession.

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.