Bank of Canada moves to "enhance the effectiveness of its monetary policy implementation"

An announcement from the Bank of Canada aimed at improving its ability to implement policy.

It's a technical item but if its of interest:

• Effective Monday, December 19, 2022, limits for Overnight Repo (OR) operations will increase to $1 billion for each eligible participant. At the same time, the maximum aggregate cash-value limit will increase to $5 billion from the previous $1.5 billion limit per offering. The Bank is increasing these limits to enhance the effectiveness of its monetary policy implementation operations.

Here is the link to the announcement if you want more:

• Bank of Canada announces increases to the dealer and round limits for Overnight Repo operations

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A 'repo' is a repurchase agreement, a form of short-term borrowing for dealers in government securities. If you need a refresher, link.

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