Bank of Canada to End Quantitative Tightening Within Months

The Bank of Canada says it plans to stop shrinking its balance sheet in the first half of this year, making it one of the first major central banks to signal an imminent end to its quantitative tightening program.

In a speech in Toronto, Deputy Governor Toni Gravelle said that when the program ends, the bank will start replacing assets via term repo operations, before starting treasury bill purchases in the fourth quarter of this year.