TORONTO, Jan 29 (Reuters) - The Bank of Canada said on Friday it raised its target for the minimum daily level of settlement balances to $500 million from $150 million to reinforce the target for the overnight rate.
The measure, which carries no policy implications, will add needed liquidity to the market, money market sources said. The need for liquidity is heightened as month end nears.
The overnight rate frequently trades above the Bank of Canada's target rate, the sources added. The current target is 0.50 percent.
Reporting by Fergal Smith; Editing by James Dalgleish