Bank of Canada lowers money market purchases by 20%

The Bank of Canada (BoC) announced on Tuesday that it has reduced the amount of the Provincial Money Market Purchases (PMMP) from 40% to 20%.

"With reduced strains in this market, and a decline in PMMP program usage from its peak, the Bank is making amendments to the program," the BoC announced in a press release. "Effective July 27, 2020, the Bank will purchase up to 20% (previously up to 40%) of each accepted offering of directly issued provincial money market securities with terms to maturity of 12-months or less."

Market reaction 

The USD/CAD pair largely ignored this development and was last seen losing 0.6% on the day at 1.3450.