As financial market conditions improve, the Bank of Canada is scaling back some measures it introduced in the immediate aftermath of the coronavirus outbreak to support the functioning of financial markets.
With the use of certain programs declining, the central bank is discontinuing the bankers’ acceptance purchase facility and its Canada mortgage bond purchase program, with the last operations scheduled for this week.
Further, beginning last week, the bank reduced the frequency of its term repo operations from weekly to bi-weekly.
“The bank will continue to monitor market conditions and, if warranted, may further revise its programs, including making changes to the size and maturity tranches of the term repo operations,” said the Bank of Canada, in a press release. “The bank remains committed to providing liquidity as required to support the functioning of the Canadian financial system. Any discontinued facilities can be restarted if necessary.”