Financial Times FT.com

Subprime fall-out

Canada looks to rein in bank liquidity

By Krishna Guha, Bernard Simon and Chrystia Freeland in New York

Published: May 22 2008 22:38 | Last updated: May 23 2008 00:46

The Bank of Canada on Thursday became the first major central bank to signal it may soon begin to scale back the provision of extra liquidity to financial markets.

Mark Carney, the bank governor, told a business group in New York that a central bank should assess “when intervention has been sufficiently successful for it to exit”.

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