The Bank of Canada today announced that it is lowering its target for the overnight rate by one-quarter of one percentage point to 3/4 per cent. The Bank Rate is correspondingly 1 per cent and the deposit rate is 1/2 per cent.
The winter Business Outlook Survey continues to provide signs of strengthening demand, especially among export-oriented firms and manufacturers. However, the outlook for businesses that are linked directly or indirectly to the energy sector has deteriorated.
The Bank of Canada will continue, in exceptional circumstances, to allow participants in the Large Value Transfer System (LVTS) to submit, on a same-day basis, requests to lift the 20 per cent limit of total collateral value pledged that can be the non-mortgage loan portfolio (NMLP).
The Bank of Canada, through its Standing Liquidity Facility (SLF), provides access to liquidity to those institutions that participate directly in the Large Value Transfer System (LVTS).