News

As part of its continuing provision of liquidity in support of the efficient functioning of financial markets, the Bank of Canada announced today that it is temporarily expanding the list of collateral eligible for use by market participants in Special Purchase and Resale Agreements (SPRAs).

In light of current market conditions, the Bank of Canada would like to assure financial market participants and the public that it will provide liquidity to support the stability of the Canadian financial system and the continued functioning of financial markets.

The Bank of Canada today released its 2008 schedule of eight dates for announcing decisions on its key policy interest rate, and confirmed the announcement dates for the remainder of this year.

In accordance with the Bank of Canada Act, the Governor of the Bank of Canada is appointed by the independent directors with the approval of the Governor in Council (federal Cabinet). Following an announcement on 25 April 2007 that the current Governor, Mr. David Dodge, would not be seeking reappointment at the end of his seven year mandate on 31 January 2008, the Bank's Board of Directors initiated a process to find a replacement.

Economic growth and inflation in Canada in the first half of this year have been stronger than was expected in the April Monetary Policy Report. The Bank judges that the economy is now operating further above its production potential than was projected in April.