BOC’s Kozicki: We expect to end quantitative tightening at some point in 2025

• Repeats Macklem’s line that if inflation continues to ease, it is reasonable to expect further rate cuts and that they are taking it one meeting at a time
• BOC is putting together an in-depth review of all exceptional actions taken during the pandemic
• The bar for US to use QE again is very high
• Unwinding of QE through QT has gone smoothly

None of this is a surprise but I fear that when the next supply shock comes, central banks won’t do enough and it will be a growth crisis rather than an inflation one.

This article was written by Adam Button at www.forexlive.com.