Scotiabank Sees Bank of Canada in No Rush to Alter Its Balance Sheet Plans, But It's Coming

08:58 AM EDT, 10/29/2025 (MT Newswires) -- The Bank of Canada is slated to release its policy statement at 9:45 a.m. ET on Wednesday, said Scotiabank.

As for the balance sheet, settlement balances equal about C$78 billion and are, as such, getting closer to the BoC's $50 billion to $70 billion target range that was revised upward in Deputy Governor Toni Gravelle's speech at the start of the year, noted the bank.

The BoC ended quantitative tightening (QT) in the Jan. 29 statement that surprised many relative to Gravelle's more open H1 2025 guidance in his speech, stated Scotiabank.

The point is approaching when the BoC will have to communicate further intentions around its balance sheet management strategy, according to the bank.

Gravelle's speech indicated a desire to ramp up holdings of repos first in the aftermath of ending QT, then T-bills, while holding off on gross purchases of Government of Canada (GoC) bonds sometime after but no earlier than late 2026 and in the normal course of monetary policy affairs, recalled Scotiabank.

The bank advised to watch this space for further communications in 2026.

MT Newswires does not provide investment advice. Unauthorized reproduction is strictly prohibited.