Bloomberg News

Bank of Canada Buys C$835 Million of Securities for One Day

October 28, 2011

(Updates with settlement balances in third paragraph.)

Oct. 28 (Bloomberg) -- The Bank of Canada bought C$835 million ($838 million) 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.

The bank also increased the amount of settlement balances in the Large Value Transfer System to C$376 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.

The central bank said the settlement balances target for Oct. 31 would be C$300 million.

--Editor: Paul Badertscher

To contact the reporter on this story: Ilan Kolet in Ottawa at ikolet@bloomberg.net

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


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