This week's meeting of the Bank of Canada Board of Directors scheduled for Moncton will now take place in Ottawa. The next regularly scheduled meeting of the Board in late October will be held in Moncton.
The Bank of Canada today announced that it is lowering its target for the overnight rate by one-half of one percentage point to 3 1/2 per cent. The operating band for the overnight rate is correspondingly lowered, and the Bank Rate is now 3 3/4 per cent.
Canada's payments, clearing and settlement systems have functioned well this week. The Bank of Canada continues to provide liquidity as needed. Trading activity in Canadian bond and money markets has increased since Wednesday and bid-ask spreads have narrowed, while activity in the foreign exchange markets has been very subdued.
The Bank of Canada and the U.S. Federal Reserve have agreed to a temporary augmentation of their existing swap facility in order to facilitate the functioning of financial markets and provide liquidity in U.S. dollars.
Canada's payments, clearing and settlement systems are functioning well, with the Bank of Canada providing ample liquidity. Equity and futures markets were closed today, but Canadian bond, money and foreign exchange markets were open, with very light trading volumes.
In light of the tragic events in the United States, the Bank of Canada would like to assure the public that it will provide the liquidity necessary to support the stability of the Canadian financial system and the continued functioning of financial markets.