BoC Deputy Governor Gravelle says the BoC is ready to act in the case of severe market-wide stress and provide liquidity support to the financial system; Bank's QT programme will likely end sometime around the end of 2024 or H1 '25

QT is working but will take some time to run its course.
If faced with extreme event that caused severe dysfunction in Government of Canada bond market, the bank could resort to large-scale GoC bond purchases.
The bar is very high for the bank to use large-scale GoC bond purchases to support market functioning again.
Bank would only be offering extraordinary liquidity in extreme market-wide situations, when entire financial system faced funding constraints.
Penalty pricing should be built into extraordinary actions whenever possible to make programme unattractive once financial conditions improve.
When penalty pricing is not possible, BoC would ensure programmes were appropriately structured in terms of size and duration.
If bank were faced with a UK-style pension fund crisis, it could use its contingent term Repo facility; this would reduce need for bank to conduct outright bond purchases.
This level is well below current level of roughly CAD 200bln; our best estimate is somewhere in the range of CAD 20-60bln.
Bank has yet to decide what level of reserves are needed to implement monetary policy through a floor system; answer is not yet set in stone.
In future BoC may once again face macroeconomic situation where policy rate is at effective lower bound; in this case, might need to use QE.
BoC expects standard emergency lending operations to ease bond market liquidity operations in most cases.
BoC continues to expect inflation to come down in months ahead but will need to see further slowing in core inflation to get inflation back down to 2%.
Canadian banks are not immune to spillover from events elsewhere, which can negatively affect things here.