News

The Bank of Canada has signed a contract with EDS Canada Inc. for the provision of systems and operations support services for the federal government's retail debt program to ensure more flexible and cost-effective service.

The Bank of Canada's commitment is to contribute to the economic well-being of Canadians. This means conducting monetary policy so that it fosters sustained economic growth - by creating conditions that favour rising output, employment, and incomes, and a stable macroeconomic environment.

The Governor stressed that the real value of a floating currency for Canada is that it helps absorb some of the impact of external shocks that affect Canada differently than the United States because of important differences in the economic structures of the two nations.

Professor John Chant of Simon Fraser University has been chosen to fill the visiting economist position of Special Adviser in the Bank of Canada for a one-year term beginning in September 2001.

The Bank of Canada today announced that it is lowering its target for the overnight rate by one-quarter of one percentage point to 4 1/2 per cent. The operating band for the overnight rate is correspondingly lowered, and the Bank Rate is reduced by one-quarter of one percentage point to 4 3/4 per cent.