Free Trial
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
CANADA
- Once QT is initiated, the Bank will stop purchases and maturing government bonds will not be replaced when they roll off the balance sheet.
- Passive: Macklem reiterated that the Bank doesn’t intend to actively sell bonds, one of the few areas of consensus amongst analysts beforehand.
- Goldman had noted beforehand a possibility of active sales in the future because of worries about the size of its balance sheet by end-2024 but that didn’t seem to the case here: “Roughly 40% of our bond holdings mature within the next two years. This suggests that, other things being equal, our balance sheet would shrink relatively quickly”.
- Purchases: There will certainly be no secondary market purchases. Potentially a little bit of primary purchases for operational reasons but that’s a technical decision.
- Timing: Doesn’t appear imminent. “We have some operational decisions to take at the time we actually decide to do this [QT] and I won’t nail down all the details [now]”.
- The next BOC policy decision is on Apr 13 with the next maturity of C$12.6B in May.
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
We are facing technical issues, please contact our team.
ok
Your request was sent sucessfully! Our team will contact you soon.
ok