- BOC expects to announce and of quantitative tightening in first half of 2025
- we will need to restart our normal course of asset purchases gradually and well before September.
- We will not be ending QT out of any concern about functioning of rebar markets.
- We will not be buying assets on any active basis to stimulate the economy like we did with the QE during the pandemic.
- Currently we have about C$130 billion in settlement balances, should hit the new target in mid-2025
- While QT is almost finished, the composition of our asset holdings won’t be back to normal for quite some time
This article was written by Greg Michalowski at www.forexlive.com.
