Monetary Easing

Monetary Easing

The policy in which a central bank lowers interest rates and deposit ratios to make credit more easily available. This makes borrowing easier for businesses, which stimulates investment and expansion of operations. The immediate result of monetary easing is generally a boost in stock prices. In the medium term, it promotes economic growth. However, if this policy remains for too long, it can lead to a situation in which there is a glut of currency or too many dollars chasing too few goods and services, leading to inflation. For this reason, most central banks alternate between policies of monetary easing and monetary tightening to encourage growth while keeping inflation under control.
References in periodicals archive ?
Global Banking News-January 29, 2018--Moody's cautions Vietnam against further monetary easing
Moody's cautions Vietnam against further monetary easing
Bank of Korea Governor Lee Ju-yeol said conditions are ripe for the central bank to end its monetary easing stance, sending a signal that it would start raising its key rate in the near future.
BOK hints at monetary tightening
The Eurosystem has been purchasing a wide range of securities through its Asset Purchase Programme, while the Bank of Japan (BOJ) has continued to buy up government bonds and is currently engaged in "quantitative and qualitative monetary easing with a negative interest rate" (QQE).
Quantitative Easing or Quackish Easing?
The decline occurred despite massive monetary easing steps and negative interest rates.
Japan consumer prices fall for third month in row
TOKYO, Feb 18 (KUNA) -- Japan's central bank decided Wednesday to maintain its current monetary easing measures and left unchanged its assessment of the country's economy.
Japan's central bank keeps monetary policy, economic view
The latest monetary easing by European Central Bank (ECB) has seen the bank pushing deposit rates into the negative zone last week.
Germany : ECB pushes deposit rates into negative zone
The BOJ chief expressed confidence about achieving the central bank's 2 percent inflation target to beat deflation and vowed to keep intact its ultraeasy monetary policy until the desired level can be sustained, referring to the bank's large-scale monetary easing introduced in April this year.
UPDATE1: BOJ lifts view on all regional economies on firm domestic demand
Economists say further monetary easing would be required to counteract the negative effects of the tax hike on companies -- the Shinzo Abe government is expected to announce a stimulus package worth $50bn or more.
Bank of Japan May Ease Monetary Policy After April's Sales Tax Hike
Summary: International Monetary Fund (IMF) officials say they are watching carefully for signs that massive flows of cash unleashed in world markets by unprecedented monetary easing might lead to asset bubbles, or to overheating in some emerging markets.
Monetary easing could drive asset bubble: IMF
Summary: Mumbai: India's rupee snapped a three-day losing streak on optimism monetary easing by global .
Rupee advances
Group of 20 finance chiefs started a two-day meeting Thursday night in Washington, with Japan seeking to address possible concerns about its bold monetary easing and the yen's recent steep fall, as well as its potential negative impact on other economies.
UPDATE1: G-20 meeting starts, Japan seeks understanding over monetary easing
1 -- City Index Asia - Stocks in Japan were given a huge boost on Wednesday (January 30th), as its Nikkei share average climbed above the 11,000 points mark for the first time in 33 months, with exporters making gains, along with the real estate sector, as the country prepares for more monetary easing by the Bank of Japan.
Nikkei Reaches 33-Month High -- City Index Asia
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