Canada calls time on money injections

The Bank of Canada has said it will withdraw liquidity from the system on signs that money-market tensions are abating.

The central bank said on Tuesday that it would not renew the C$1 billion ($990m) Term purchase and resale agreement (PRA) maturing on 10 July.

"Conditions in Canadian markets have improved since the end of April, including funding conditions out to three months," the central bank said, noting that indicative measures of bank funding costs such as the spread between the three