Press releases

The Bank of Canada and the U.S. Federal Reserve have agreed to a temporary augmentation of their existing swap facility in order to facilitate the functioning of financial markets and provide liquidity in U.S. dollars.

Canada's payments, clearing and settlement systems are functioning well, with the Bank of Canada providing ample liquidity. Equity and futures markets were closed today, but Canadian bond, money and foreign exchange markets were open, with very light trading volumes.

In light of the tragic events in the United States, the Bank of Canada would like to assure the public that it will provide the liquidity necessary to support the stability of the Canadian financial system and the continued functioning of financial markets.

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 per cent. The operating band for the overnight rate is correspondingly lowered, and the Bank Rate is now 4 1/4 per cent. With today's action, the total reduction in interest rates by the Bank this year amounts to 1 3/4 percentage points.

The Bank of Canada today released its Update to the May Monetary Policy Report, in which it discusses economic and financial trends in the context of Canada's inflation-control strategy.

Sheryl Kennedy, Deputy Governor of the Bank of Canada, has been asked by the Bank's Board of Directors to serve as Deputy Governor, Financial Markets. She takes over the responsibilities formerly carried out by Tim Noël, who passed away last week.

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 1/4 per cent. The operating band for the overnight rate is correspondingly lowered, and the Bank Rate is now 4 1/2 per cent.

On behalf of the staff and Board of Directors of the Bank of Canada, Governor David Dodge today issued the following statement on the death this week of Tim Noël, Deputy Governor of the Bank since 1994:

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 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.