Bank of Canada plans changes to operating framework
Proposal to cut back on purchase of government bonds through primary market
The Bank of Canada is proposing a host of changes to its framework for monetary operations, partly to prevent liquidity pressures intensifying in the market for government bonds.
On May 14, deputy governor Lynn Patterson insisted the framework is "working well" but suggested it should change in the face of "shifts in the financial system".
According to a consultation paper, the central bank hopes to reduce its presence in the primary market for government bonds. It currently buys 20% of each new
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