What Is Quantitative Tightening?
Quantitative tightening is when a central bank withdraws money from the system by shrinking its
balance sheet, the reverse of QE.
Quantitative easing
Central bank buys assets, adding money and
easing conditions.
Quantitative tightening
Central bank lets assets roll off, draining
money.
QE loosens; QT tightens. Both move risk appetite.
Source: CFGI
Markets