Bank of Canada sees quantitative tightening ending in 2025
BNN Bloomberg
A Bank of Canada official said quantitative tightening will likely end in 2025, at which point the central bank will consider purchasing assets in both primary and secondary debt markets.
In a speech in Toronto, Deputy Governor Toni Gravelle reiterated that the program is expected to run its course once settlement balances have reached a range of $20 billion to $60 billion, from the current level of roughly $100 billion.
“The bottom line is the balance sheet normalization process is continuing as we laid out last year and we have tools to manage any temporary funding pressures that might come up along the way,” Gravelle said.
The remarks suggest the central bank’s plans to shrink its balance sheet haven’t changed substantially in the last year, and will help to end to speculation officials will be soon forced to wind down QT.
