The Financial Post reports in its Thursday edition that the Bank of Canada made a rare "jumbo" rate cut last week. The Post's Jordan Gowling writes that "jumbo" refers to cuts over 25 basis points. The BOC typically prefers incremental rate moves of 25 basis points to allow time for policy changes to impact the economy. However, it can implement larger changes if needed, such as during economic downturns, emergencies or inflation spikes. For instance, in July, 2022, the BOC raised its policy rate by 100 basis points due to rising prices, followed by a 75-basis-point hike in September. If urgent, the BOC can call emergency meetings for faster rate adjustments, as seen in March, 2020, when the bank reduced the overnight rate from 1.75 per cent to 0.25 per cent in just one month through significant cuts. The most recent example of the BOC cutting big was at the outset of the pandemic, when Canadian and global economies slowed rapidly due to COVID-19 lockdowns. Many economists believe that last week's jumbo cut by the BOC, at least for now, is less about a looming economic catastrophe and more about playing catch-up. Several economists say the BOC has fallen behind the curve in restoring Canada's policy rate to a neutral level.