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Interesting that the deposit number is precisely round: 3,000 million

It’s also the fourth week in a row for this number, with only April 29th being slightly lower for some reason.

It looks like a 3 billion deposit target has been the marching order for the past month - with government deposits adjusted as necessary to achieve this result.

I also noticed in the monthly chartered bank series, which has only been updated to March, chartered bank holdings of notes and coins are the lowest they’ve been in 2 years. That’s interesting, but almost certainly not directly related to the deposit number.

Yes, a nice, round number like that sounds very much like "Okay, let's start with $3b and see how things go."

The $3 billion is related to the Bank's operating framework at the "effective lower bound" of 25bps. The excess balances are to drive trading of overnight balances down to the lower end of the operating band. I think this means that target balances higher than $3 billion would signal a QE strategy is in place.

See details here: http://www.bankofcanada.ca/en/fixed-dates/2009/rate_210409_1.pdf

Ah - thanks very much Brendon. Good thing I posed the title as a question, then.

So we're back to 'quantitative easing if necessary, but not necessarily quantitative easing'.

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