Bank of Canada and OSFI Issue Joint Statement Clarifying Standing Liquidity Facility as Routine Tool

The Bank of Canada and the Office of the Superintendent of Financial Institutions (OSFI) released a joint statement to provide clarity on the Standing Liquidity Facility (SLF). They emphasized that the SLF is a key tool for monetary policy implementation and routine liquidity management for Lynx participants, not an indicator of liquidity stress. This aims to reinforce the policy interest rate and ensure the effective functioning of Canada's high-value payment system.