Quantitative Easing

A central bank policy of buying securities to inject money into the economy.

Quantitative Easing is an unconventional monetary policy where a central bank purchases government bonds and other securities to increase the money supply and lower long-term interest rates. Used when traditional rate cuts are insufficient, notably after the 2008 financial crisis and COVID-19.

During the crisis the central bank launched quantitative easing, buying bonds to push long-term rates down.