BoC Deputy Governor Toni Gravelle reiterated in a speech that as the policymakers “continue to gain confidence in the strength of the recovery”, the central bank will “gradually adjust the pace of our QE purchases”. There will be a new full economic projection at the April policy decision.
But Gravelle also emphasized, “moderating the pace of purchases while adding to our holdings would simply mean that we are still adding stimulus through QE but at a slower pace. It would not mean we are removing stimulus. We would be easing our foot off the accelerator, not hitting the brakes.
Even at the point where the bond holdings are “largely stable”, he said, “the accumulated amount of GoC bond holdings would still represent a significant amount of stimulus in the system.
