As widely expected, the Bank of Canada has cut its key interest rate by a quarter percentage point to 2.25%.

The central bank today announced that it is lowering its target for the overnight rate by 25 basis points to 2.25%. The operating band for the overnight rate is correspondingly lowered, and the Bank Rate is now 2.5%.

Economic data since the last 25 basis point cut on January 20 has been “broadly consistent” with the economic outlook the central bank laid out in its January Monetary Policy Report Update, says the Bank. “As expected, core and total consumer price index inflation in January moved significantly below the 2% inflation target.”

The major chartered banks followed suit by trimming many of their consumer borrowing costs, beginning with a quarter-point cut to the prime interest rate charged to their best customers.

That has been reduced by many banks to 4% from 4.25%.