The Bank of Canada has injected C$1.477B into Canada's financial system Monday, the largest since Sept 2010. These injections are a regular occurrence, one of the standard measures the bank uses to nudge the cost of overnight money back to its target rate, currently set at 1%. What's unusual here is the size of the injection. It doesn't imply any change of the bank's monetary policy, but does point to tighter conditions in the interbank market. The BOC is expected to leave its overnight target rate at 1% at its policy announcement Tuesday.
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