The Globe and Mail reports in its Friday edition that according to the deputy governor of the Bank of Canada, Toni Gravelle, the BOC plans to keep reducing the size of its balance sheet until 2025. The Globe's Mark Rendell writes that this contradicts rumours that the BOC would end its quantitative tightening program early due to recent disruptions in short-term funding markets. During a speech in Toronto, Mr. Gravelle announced that the BOC plans to continue reducing its Government of Canada bond holdings which increased during the pandemic. This process, known as quantitative tightening, involves allowing the bonds to mature without purchasing new ones, while also decreasing the amount of commercial bank reserves (referred to as settlement balances) held at the BOC. Mr. Gravelle said QT will likely continue until settlement balances have fallen to a range of $20-billion to $60-billion, down from the current level of about $100-billion. He expects this to happen "sometime in 2025." Mr. Gravelle told a Bay Street crowd, "The bottom line is the balance sheet normalization process is continuing as we laid out last year, and we have tools to manage any temporary funding pressures that might come up along the way."