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 ?
TOKYO, July 15 (KUNA) -- Japan's central bank cut growth forecast for the world's third-largest economy amid sluggish exports and weak household spending after a sales tax hike in April, but maintained its current monetary easing measures.
Bank of Japan Governor Haruhiko Kuroda said Thursday before attending a meeting of Group of 20 finance chiefs that Japan's bold monetary easing steps are aimed at achieving a domestic policy goal of pursuing a 2 percent inflation target.
THE DANGER OF FURTHER MONETARY EASING (The Japan Times, an English-language daily)
Global Banking News-October 19, 2015--Japanese finance minister not sure about monetary easing
Bank of Japan Governor Haruhiko Kuroda said Monday the central bank's new monetary easing steps are expected to "drastically change the expectations of markets and economic entities" about the country overcoming nearly 15 years of deflation.
The Finance Ministry expressed hope at the Bank of Japan's policy-setting board meeting Thursday that the central bank will maintain its quantitative monetary easing, Vice Finance Minister Toshiro Muto said.
Global Banking News-April 30, 2015--Russia could implement deeper monetary easing to contain inflation
TOKYO, May 21 (KUNA) -- Japan's central bank decided on Wednesday to maintain its current monetary easing measures and left unchanged its assessment of the world's third-largest economy.
Bank of Japan Governor Haruhiko Kuroda said Friday the central bank will maintain its easy monetary policy until it attains its 2 percent inflation target, indicating that monetary easing will remain in place beyond two years if the bank deems it necessary.
The BOJ's Policy Board members agreed ''the effects of the monetary easing measures were starting to be observed in financial markets,'' the minutes say.
Global Banking News-April 23, 2015--Central bank official says China could opt for more monetary easing
TOKYO, April 30 (KUNA) -- Japan's central bank decided on Wednesday to maintain its massive monetary easing program, suggesting its confidence that the country remains on track to meet the 2-percent price stability target.