Quantitative Easing

Synonyms: QE, Large-Scale Asset Purchases

Quantitative Easing (otherwise known as “large-scale asset purchases”), is a reference to an unconventional form of monetary policy whereby a central bank purchases long-term government bonds or other financial assets in large quantities in order to add money directly into the economy.

This provides the economy with a boost whilst also lowering interest rates and expanding the central bank’s balance sheet.

Back to Glossary