Canada's central bank to inject billions into money markets

TORONTO (AP) -- Canada's central bank is increasing its plans to inject extra cash into term lending markets from $8 billion Canadian dollars ($7.4 billion) to C$20 billion ($18.5 billion) to ensure Canadians have access to loans.

The Bank of Canada's announcement Friday signals that the global financial crisis is seriously affecting the availability of credit in Canada.

The bank also said its expanding short-term purchase and resale agreements under which commercial lenders get access to funds for up to 91 days.

The bank now expects the minimum total outstanding will hit C$20 billion ($18.5 billion) by Nov. 6, and it intends to hold weekly auctions at least until the end of the year.

Market conditions have also prompted the bank to accept asset-backed commercial paper as collateral from primary dealers on a temporary basis.

(Copyright 2008 by The Associated Press. All Rights Reserved.)


Join the Conversation!

To comment, the following rules must be followed:

  • No Obscenity, Profanity, Vulgarity, Racism or Violent Descriptions
  • No Negative Community Comparisons
  • No Fighting, Name-calling, or Personal Attacks
  • Multiple Accounts are Not Allowed
  • Stay on Story Topic

Comments may be monitored for inappropriate content, but the station is under no legal obligation to do so.
If you believe a comment violates the above rules, please use the Flagging Tool to alert a Moderator.
Flagging does not guarantee removal.

Multiple violations may result in account suspension.
Decisions to suspend or unsuspend accounts are made by Station Moderators.
Links require admin approval before posting.
Questions may be sent to webmaster@wvlt-tv.com. Please provide detailed information.

powered by Disqus

WVLT VOLUNTEER TV

6450 Papermill Drive Knoxville, TN 37919 Phone - (865) 450-8888; Fax - (865) 450-8869
Gray Television, Inc. - Copyright © 2014 WVLT-TV Inc. - Designed by Gray Digital Media - Powered by Clickability 30269184