Free Trial

BOC: The First Hint Of Passive QT

CANADA
  • The BoC kept to its guidance that it will "consider exiting the reinvestment phase" once it begins to hike, as per at previous meetings including the October MPR.
  • There was a new additional that it will also consider “reducing the size of its balance sheet by allowing roll-off of maturing Government of Canada bonds” at the same time.
  • So, loose details on run-off, and passive as generally seemed to be expected, but with questions likely on the potential timing as to whether it could be with/after rate liftoff at the presser at 1100ET.
  • Limited market expectations beforehand were for runoff starting from 2H22 but with no clear call as to when it could formally be announced.

To read the full story

Close

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.