REPEAT: CANADA: BOC seen expanding balance sheet.....>

CANADA: REPEAT: BOC seen expanding balance sheet even as it scaled back

frequency of repo/BA transactions Wed, mostly on plan to buy at least CAD5b/week

of federal bonds. Balance sheet already almost quadrupled to CAD464b or 20% of

Q1 GDP:

-Scotiabank's Derek Holt: "A year from now, the BoC's balance sheet will likely

be equal to about 40% of nominal GDP."

-RBC's Josh Nye: Over the next year "it's hard to see the BoC easing up on its

$5 billion weekly" federal bond purchases.

-Tony Stillo, Oxford Economics: "Macklem will continue to grow the Bank's

balance sheet to 30% of GDP, or about $700bn by the end of 2021."

-Benoit Durocher, Desjardins: "There is no need to fear that the BoC will

quickly pull out of the markets. It will take several quarters before the

economic recovery is well underway."

-Stephen Brown, Capital Economics: New Governor Macklem needs to expand asset

purchases to support the economy, an "easy win" would be growing the CAD10

billion corporate bond purchase program as soon as July 15 meeting.