Bank of Canada send soothing signals to Canadian markets
Lots of unsaid commentary going on with the Bank of Canada’s move today to inject $2Bn liquidity into the Canadian Banking system. In effect the move removes risk from Canadian Banks balance sheets, and takes risk on to the central Bank. The amount is not large in money market terms but it does send signals that the Central Bank is watching carefully.
reportonbusiness.com: Central bank injects $2-billion into market
The announcement has the effect of injecting liquidity into the 28-day market, with the central bank soaking up securities that banks and primary dealers are having trouble with these days, and replacing those troubled securities with top-notch t-bills.
