Forecasters were widely expecting the jumbo interest rate cut after the November labour force survey showed the unemployment rate rose to 6.8%. Governor Tiff Macklem said in his prepared statement that the central bank opted for two large rate cuts in a row because economic growth doesn’t need to be restricted anymore.

After quickly chopping interest rates down from the highest levels in two decades, the Bank of Canada is pivoting to a more gradual pace of adjustments — pushing back on expectations of a rush to cheaper borrowing costs.

Canada's main stock index rose on Tuesday, helped by mining shares, as investors cheered the Bank of Canada's hefty interest rate cut and the possibility of a U.S. rate cut next week. The Toronto Stock Exchange's S&P/TSX composite index was up 59.

US and European stock markets rose on Wednesday after inflation data cemented expectations that the Federal Reserve will trim interest rates next month.