Bank of Canada Boosts Repo Use Amid Corra Strain Concerns

The Bank of Canada has increased its two-week repo operations to ease strains in short-term funding markets, according to Deputy Governor Toni Gravelle.

Gravelle said policymakers are trying to reduce the upward drift of Corra, the Canadian Overnight Repo Rate Average. This is being done by regularly increasing the size of two-week repo operations.

The increase in repo use comes as a response to market strains, with Gravelle outlining how policymakers are addressing the issue at the Bloomberg Canadian Finance Conference in New York on Tuesday.