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

• 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.