The Bank of Canada has reduced its key interest rate to 4.75 per cent.

“We’ve come a long way in the fight against inflation, and our confidence that inflation will continue to move closer to the 2 per cent target has increased in recent months,” The Bank of Canada’s Governor, Tiff Macklem, said Wednesday morning.

This is the first time the rate has changed in seven months.

The country’s key interest rate has been held at 5 per cent since July, when it was ticked up a quarter of a basis point the last time it was at 4.75 per cent.