Quantitative tightening (QT)
The central bank shrinks its balance sheet by not reinvesting maturing bonds.
Definition
The central bank shrinks its balance sheet by not reinvesting maturing bonds.
Why it matters
Central banks set the cost of money and guard price stability: their decisions are among the most watched events in markets.
How to read it in the news
Read the statement and press conference as much as the decision: guidance on what comes next often moves markets more.
Notitia newsroom · education, not investment advice.