UPDATE 1-Bank of Canada injects C$775 mln into market

OTTAWA, July 21 (Reuters) - The Bank of Canada injected liquidity into the overnight money market on Monday for the first time since June 12, just days after withdrawing its emergency loans to the short-term funding market.

The central bank bought C$775 million worth of securities in the market with the agreement to sell them back the next business day, an operation designed to lower the overnight interest rate toward the central bank's 3 percent target.

The operations, known as Special Purchase and Resale Agreements, or SPRAs, became more frequent after the global credit crunch erupted in August 2007 but had become relatively scarce this year.

The amount injected into the market on Monday was the biggest since May.

The Bank of Canada's measure of the overnight repo rate average, or CORRA rate CORRA= for Friday was 3.0011.

The LIBOR rate LIBOR01 for overnight Canadian dollar deposits was 2.95 percent ($1=$1.00 Canadian) (Reporting by Louise Egan; Editing by Peter Galloway)