Bank of Canada to resume ‘business as usual’ this year as it rebuilds its assets

The Bank of Canada plans to end quantitative tightening in the first half of this year and resume asset purchases after taking extraordinary measures during the pandemic. Deputy governor Toni Gravelle outlined the bank’s goal of reaching reserves of $50 to $70 billion by the third quarter, with plans to rebuild assets through repurchase agreements, treasury bills in 2025, and federal bonds in 2026. Gravelle emphasized that asset purchases will not be used for active economic stimulation like during the pandemic, signaling a return to “business as usual” for the central bank.

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