Economics
Bank of Canada Follows Fed With Market Liquidity Injections
- Central bank expands repo operations to weekly from biweekly
- Move follows Federal Reserve step to ease market disruptions
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The Bank of Canada is acting to inject liquidity into the country’s funding markets in a bid to bolster financial stability, following similar efforts by the Federal Reserve.
The bank will “proactively” support interbank funding by increasing the frequency with which it purchases Canadian government bonds to weekly, from every two weeks, and widening the terms to include six-month and 12-month operations, it said Thursday in a statement.