TORONTO, Jan 29 (Reuters) - The Bank of Canada said on
Friday it raised its target for the minimum daily level of
settlement balances to $500 million from $150 million to
reinforce the target for the overnight rate.
The measure, which carries no policy implications, will add
needed liquidity to the market, money market sources said. The
need for liquidity is heightened as month end nears.
The overnight rate frequently trades above the Bank of
Canada's target rate, the sources added. The current target is
0.50 percent.
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Bank of Canada statement: http://www.bankofcanada.ca/2016/01/bank-canada-announces-higher-target-settlement-balances/
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