supportQuantitative Easing
Definition :
Quantitative easing is the process of increasing the amount of money in circulation in an attempt to revive the economy.
While the Bank will initially add £75bn, Chancellor Alistair Darling has given permission to extend this to up to £150bn.
The idea is that if the amount of money in the system is boosted, commercial banks will find it easier to lend. Instead of simply printing money, the Bank will buy assets such as government securities (gilts) and corporate bonds.
Phillip Shaw, chief economist at Investec said that Quantitative easing "should, in principle encourage the banks to lend to private sector agents such as households and businesses, stocking monetary growth and stimulating activity."
Related Information:
- Read how financial organisations achieve data integrity and a single customer view, with Experian QAS, visit our QAS for Finance page.
