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The Bank of Canada today announced its intention to temporarily add assets to its balance sheet to offset the anticipated seasonal increase in the demand for bank notes. These operations have no monetary policy significance.

The Bank has a commitment to contribute to the economic well-being of Canadians. This means that we must conduct monetary policy so that it fosters sustained solid economic growth.

The Bank of Canada today announced that it is lowering its target for the overnight rate* by one-half of one percentage point to 2 1/4 per cent. The operating band for the overnight rate is correspondingly lowered, and the Bank Rate is now 2 1/2 per cent.

The Bank of Canada today released its semi-annual Monetary Policy Report in which it discusses economic and financial trends in the context of Canada's inflation-control strategy.

Since our May 2001 Report, a further weakening of the world economy and the terrorist acts in the United States have forced a reappraisal of global economic prospects. By midsummer, evidence began to accumulate that the economic slowdown, globally and in Canada, would bedeeper and more protracted than previously anticipated. Thus, in late August, the […]

Right now, all national economies face difficulties - difficulties stemming from the further weakening of the world economy and from the terrorist acts in the United States. As businesses, governments, and individuals in Canada - and around the world - strive to come to terms with the implications of those acts, the main preoccupation is, naturally, with the near term.

As we all strive to come to terms with this tragedy and its implications, it is understandable that our immediate preoccupation is with near-term issues, he said. Nonetheless, it is "critically important that we maintain a sense of perspective - that we step back and look past current developments, focusing also on the longer-term trends in our economy and its potential."

All of us at the Bank of Canada share a deep sorrow at the loss of so many lives in the 11 September terrorist attacks in the United States. Among those who died were innocent citizens of many nationalities, including Canadians. To their families, friends, and colleagues we extend our heartfelt sympathy.

The Bank of Canada today announced that it is lowering its target for the overnight rate* by three-quarters of one percentage point to 2 3/4 per cent. The operating band for the overnight rate is correspondingly lowered, and the Bank Rate is now 3 per cent.

In July 2001, the Bank announced its intention to expand the list of collateral eligible for use in the Large Value Transfer System (LVTS), for loans made to direct participants in LVTS and the Automated Clearing Settlement System (ACSS), and to secure bank note withdrawals. Effective 1 November 2001, the list of eligible collateral will be expanded and will comprise the following: