RSS Gravelle: BOC expects to announce end of quantitative tightening in 1H of 2025

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 RSS Gravelle: BOC expects to announce end of quantitative tightening in 1H of 2025

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  • 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.
 
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