The Bank of Canada cut interest rates by 50 basis points on Wednesday, lowering its benchmark rate to 3.75 per cent from 4.25 per cent, the sharpest cut in borrowing costs since the early days of the March 2020 outbreak, according to reports. The Bank of Canada called it a sign that the country is returning 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.