Bank of Canada lowers key interest rate to 4.5%. What does that mean for you and me common people.

Context: The Bank of Canada cut interest rates by a quarter percentage point for a second consecutive meeting and signaled further easing ahead as inflation worries wane.

Policymakers led by Governor Tiff Macklem lowered the benchmark overnight rateto 4.5% on Wednesday, as expected by markets and economists in a Bloomberg survey. Officials see sluggish growth continuing to cool inflation, and said they’re spending more time discussing economic headwinds.

The Bank of Canada’s decision to lower its key interest rate to 4.5% has several implications for the average person:

1. Lower borrowing costs: This rate cut will lead to reduced borrowing costs for Canadians with variable-rate loans, including some mortgages and home equity lines of credit. This means lower monthly payments for those with such loans.
2. Immediate impact on variable-rate debt: People carrying debt with variable rates of interest will feel the effects of this rate cut right away. This could provide some financial relief for those struggling with…