The Canadian central bank has made a significant interest rate cut in order to revive the sluggish housing market, which is a key driver of the country's economy.

This move comes as policymakers have increased the pace of rate reductions due to low inflation levels. While it has not been explicitly stated, some economists believe that this latest action marks the beginning of a new phase in the monetary policy cycle.

The central bank's strategy is aimed at stimulating growth and supporting the struggling housing sector.