Bank of Canada boosts two-week repo operations to ease Corra pressure

Toni Gravelle: Toni Gravelle serves as Deputy Governor at the Bank of Canada, where she focuses on financial markets, monetary policy implementation, and financial stability issues. On September 29, 2026, she delivered remarks at the Bloomberg Canadian Finance Conference in New York detailing the central bank's approach to managing repo market conditions and CORRA pressures through enhanced term operations. Gravelle has also participated in recent press conferences on financial stability reports and joint statements with regulators on liquidity facilities. Bank of Canada: The Bank of Canada is Canada's central bank responsible for implementing monetary policy, maintaining financial system stability, and managing short-term funding markets through operations like repos. In recent remarks, Deputy Governor Toni Gravelle highlighted the bank's proactive adjustments to its toolkit, including more frequent use of two-week term repo operations to address pressures in overnight funding markets. The institution is also advancing infrastructure upgrades, such as adopting a tri-party platform for repo operations starting in early 2027. Repo Market Management: The Bank of Canada has adjusted its use of two-week term repo operations to proactively address expected or seasonal funding pressures rather than solely reacting after they emerge. Regulatory Coordination: The Bank of Canada and the Office of the Superintendent of Financial Institutions recently issued a joint statement clarifying that use of the Standing Liquidity Facility for routine overnight needs is considered normal liquidity management, not a sign of stress. Infrastructure Developments: The central bank plans to begin using a new tri-party platform for its repo operations in the first quarter of 2027 to enhance market resilience and attract broader participation.