Economics

Canada to Buy Mortgages in Latest Step to Ease Market Strain

  • Housing agency says it will buy up to C$50 bln in home loans
  • Bank of Canada also steps in with purchases of mortgage bonds
Photographer: David Kawai/Bloomberg
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Canadian policy makers are escalating their efforts to backstop the nation’s financial system and ensure banks have plenty of room to continue lending through the coronavirus crisis.

In separate statements on Monday, the federal governmentBloomberg Terminal and Bank of Canada said they planned to purchase billions of mortgages and mortgage-backed securities to inject liquidity into the financial system.