Bank of Canada buys $1.34 billion of securities for one day
17 April 2012 Ottowa
Image: Shutterstock
The Bank of Canada bought C$1.34 billion ($1.34 billion) of securities for one day in order to achieve its overnight interest rate target of 1 per cent.
The central bank increased the amount of today’s purchases after initially reporting a C$760 million total. In March of this year, the bank announced it is maintaining its target for the overnight rate at 1 per cent.
A release said: “With the target interest rate near historic lows and the financial system functioning well, there is considerable monetary policy stimulus in Canada. The Bank will continue to monitor carefully economic and financial developments in the Canadian and global economies, together with the evolution of risks, and set monetary policy consistent with achieving the 2 per cent inflation target over the medium term.”
The central bank increased the amount of today’s purchases after initially reporting a C$760 million total. In March of this year, the bank announced it is maintaining its target for the overnight rate at 1 per cent.
A release said: “With the target interest rate near historic lows and the financial system functioning well, there is considerable monetary policy stimulus in Canada. The Bank will continue to monitor carefully economic and financial developments in the Canadian and global economies, together with the evolution of risks, and set monetary policy consistent with achieving the 2 per cent inflation target over the medium term.”
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