Economics
Bank of Canada Lays Out Plans to Slow QE, Halts Other Programs
- Central bank suspends main pandemic short-term facility
- Deputy governor Gravelle outlines how QE will be scaled back
Toni Gravelle speaks during a Bank of Canada video conference in June 2020.
Photographer: David Kawai/BloombergThis article is for subscribers only.
The Bank of Canada provided the greatest guidance yet into how it plans to slow purchases of government bonds as the economic recovery accelerates, fueling expectations it could begin doing so as soon as April.
In a speech on Tuesday, Deputy Governor Toni Gravelle said the central bank is winding down emergency liquidity programs it deployed to grease markets when the coronavirus hit last year, including programs to buy provincial and corporate debt. He also provided insight into how the central bank plans to pare back its main government bond purchasing program -- including a pledge that any tapering will be gradual.