UPDATE 2-Bank of Canada extends liquidity facilities

* Extends swap facility with Fed to Feb. 1, 2010

* Regular term PRA auctions extended to January (Adds details and comments; In U.S. dollars unless noted)

TORONTO, June 25 (Reuters) - The Bank of Canada said on Thursday it will extend the temporary facilities it has used to provide financial market liquidity until early next year.

It also said it has agreed with the U.S. Federal Reserve to extend their $30 billion swap facility to Feb. 1, 2010. Several other major central banks made the same announcement on Thursday. [ID:nNYS005172]

The temporary reciprocal currency arrangements with the Fed, which the Bank of Canada has not found it necessary to draw on, were due to expire on Oct. 30.

"The Bank of Canada continues to closely monitor global market developments and remains committed to providing liquidity as required to support the stability of the Canadian financial system and the functioning of financial markets," the bank said in a statement.

The extension was announced as other central banks around the world indicated they would extend emergency funding programs, or drop certain liquidity operations. [ID:nN25262726] [ID:nLAG003537]

"It's far less costly to maintain a program rather than reintroducing it constantly," said Eric Lascelles, chief economics and rates strategist and TD Securities.

"I don't think it's a sudden statement of pessimism. It's just an opportunistic moment to do this."

The Bank of Canada said its regular term purchase and resale agreement auctions will continue through to at least the end of January 2010.

It also said it will continue to accept an assignment of non-mortgage loan portfolios as eligible collateral for the Large Value Transfer System and standing liquidity facility purposes until at least Feb. 1, 2010. (Reporting by Ka Yan Ng; editing by Peter Galloway)