Bloomberg News

Bank of Canada Buys C$1.215 Billion of Securities for 1 Day

October 03, 2011

(Updates with total in payment system in last paragraph.)

Oct. 3 (Bloomberg) -- The Bank of Canada bought C$1.215 billion ($1.16 billion) of securities for one day.

The central bank announced the purchase, aimed to keep overnight lending rates close to its current target of 1 percent, on its website today from Ottawa.

Earlier, the bank said it had bought C$550 million worth of securities.

The bank also increased the amount of settlement balances in the Large Value Transfer System to C$705 million from the regular daily target of C$25 million. The funds are used to help settle payments between banks and brokers, and a higher amount can also encourage lower interest rates on interbank loans.

--Editors: Paul Badertscher, Vince Golle

To contact the reporter on this story: Greg Quinn in Ottawa at gquinn1@bloomberg.net

To contact the editor responsible for this story: Chris Wellisz at cwellisz@bloomberg.net


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