Canada's Duguay raises chances of liquidity shift

Fresh suspicions that the Bank of Canada may alter its liquidity provisions by lending for longer periods arose on Tuesday after a speech by Pierre Duguay, a deputy governor of the central bank.

Speaking in Quebec City, Duguay reiterated the question, first raised by David Dodge, the governor of the central bank, last month, of whether the Bank of Canada needs to be able to make loans for periods longer than overnight.

"The provision of liquidity through regular operations has been effective

To continue reading...