The Bank of Canada today conducted an Overnight Repo (OR) operation, which is a regular tool that is part of the Bank’s standard operating framework for implementing monetary policy. OR operations are conducted when the overnight collateralized interest rate is trading materially above the target policy rate and when broad overnight general collateral funding conditions warrant a temporary liquidity injection. OR operations support the effective implementation of monetary policy by reinforcing the Bank’s target for the overnight rate and are offered to eligible counterparties at the Bank’s discretion. For more information, see the OR terms and conditions.
Conducting an OR operation does not indicate a change in the stance of monetary policy, or in the normalization of the Bank’s balance sheet via quantitative tightening. Should there be a change to the policy of quantitative tightening or to the management of the Bank’s balance sheet more generally, the Bank would announce that it is implementing a change and provide related details, in a separate communication.
The Bank monitors conditions in the overnight funding market on an ongoing basis and will conduct ORs or Overnight Reverse Repos operations as needed to support the effective implementation of monetary policy.
Director
Financial Markets Department
613‑782‑7245
Director
Financial Markets Department
613‑782‑7723
Assistant Director
Financial Markets Department
403‑956‑4561