Effective Monday, December 19, 2022, limits for Overnight Repo (OR) operations will increase to $1 billion for each eligible participant. At the same time, the maximum aggregate cash-value limit will increase to $5 billion from the previous $1.5 billion limit per offering. The Bank is increasing these limits to enhance the effectiveness of its monetary policy implementation operations. OR operations will continue to be conducted with Primary Dealers as a competitive uniform auction format with minimum bid rate set at the Bank’s target for the overnight interest rate. The time for OR operations remains unchanged when these transactions are offered at the Bank’s discretion based on conditions observed in the overnight funding market, normally at 11:45am (ET) with a deadline of 12 noon for participants to submit tenders. The Bank also reserves the right to conduct these operations earlier or later in the day if necessary. The terms and conditions of the OR operation provide operational details.
OR operations support the effective implementation of monetary policy by intervening and injecting liquidity intraday into the general collateral overnight market to reinforce the Bank’s target for the overnight rate.
The Bank continues to monitor conditions in the funding market and will conduct overnight repos as needed to support its monetary policy objectives. Overnight reverse repos also remain available on a daily basis at 10:30 (ET).
Director
Financial Markets Department
613‑782‑7245
Director
Financial Markets Department
613‑782‑7723