Bank of Canada Adjusts Deposit Rate to Alleviate Repo Market Issues

Reported about 6 hours ago

The Bank of Canada has implemented a new deposit rate policy, setting it 5 basis points below the policy interest rate, which is helping to improve the functionality of money markets and reduce borrowing costs. This change has restored market liquidity, allowing for more effective use of reserves and encouraging participation in the repo market, particularly among large institutions. The adjustment aims to address prolonged inefficiencies in short-term funding markets that have kept borrowing costs elevated.

Source: YAHOO

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