Quantitative Easing

The term quantitative easing (QE) describes a monetary policy used by some central banks to increase the supply of money by increasing the excess reserves of the banking system. This policy is usually invoked when the normal methods to control the money supply have failed, i.e the bank interest rate, discount rate and/or interbank interest rate are either at, or close to, zero.

A central bank implements QE by first crediting its own account with money it creates ex nihilo ("out of nothing"). It then purchases financial assets, including government bonds, agency debt, mortgage-backed securities and corporate bonds, from banks and other financial institutions in a process referred to as open market operations.

Articles About Quantitative Easing

BOE'S Dale says expects euro zone uncertainty set to continue

By Reuters

Uncertainty in the euro zone will continue for the next few years, acting as a drag on the UK economy, Bank of England policy maker Spencer Dale was quoted as saying in a newspaper on Sunday. (6:14 am)

MORE TOPICS: BANK OF ENGLAND

EU Morning Report- Euro remains under pressure

By Easy Forex

 The euro (EUR) dropped to a two year low falling to 1.2515 from 1.2619 against the US dollar as uncertainty in the market grows. The single currency is under pressure as investors are worried about a problematic banking sector in the eurozone and a messy Greek exit from the euro. Economic figures . (May 25)

MORE TOPICS: GOLD, FTSE, S&P, GERMANY, MANUFACTURING, BANK OF ENGLAND

Australian Dollar
Daily Forex Forecast 05/25/2012

By Ozforex

Whilst troubles in Europe continued to escalate overnight the Australian dollar has decided enough is enough for now and has remained in range-bound consolidation mode. I (May 24)

MORE TOPICS: UNEMPLOYMENT, GERMANY, MANUFACTURING, RETAIL SALES, JAPAN, RETAIL

BoE's Miles says gilt purchases still effective

By Reuters UK

Bank of England policymaker David Miles said on Thursday that he believed that conducting quantitative easing via gilt purchases was still the best way for the central bank to stimulate the economy, rejecting calls to buy other assets. (May 24)

MORE TOPICS: GDP, BANK OF ENGLAND, INTERNATIONAL MONETARY FUND

British recession deepens as euro zone woes mount

By Reuters UK

A slump in construction output drove Britain even deeper into recession than initially thought in the first quarter of this year, raising the chance the Bank of England will inject more cash to prop up the faltering economy. (May 24)

MORE TOPICS: IMF, HSBC, GDP, BANK OF ENGLAND, INTERNATIONAL MONETARY FUND, MORTGAGE

UK recession deepens as euro zone woes mount

By Reuters UK

Britain fell deeper into recession than first thought in the first quarter of this year after a sharp drop in construction output, raising the likelihood the Bank will need to inject more stimulus to protect the economy from the raging euro zone debt crisis. (May 24)

MORE TOPICS: IMF, GDP, INTERNATIONAL MONETARY FUND, MORTGAGE, INVESTMENT

UK economy contracted more than expected in Q1

By Reuters UK

Economy shrank more than first thought between January and March, after the deepest fall in construction output in three years, while government spending made the biggest contribution to growth, official data showed on Thursday. (May 24)

MORE TOPICS: IMF, GDP, INTERNATIONAL MONETARY FUND, INVESTMENT

David Cameron
David Cameron's 600,000 Job Creation Claim to Parliament 'Not True'

By IBTimes UK

Britain's prime minister told David Cameron parliament that 600,000 jobs had been created in the private sector since his coalition government took office in May 2010. (May 23)

MORE TOPICS: RETAIL SALES, GDP, RETAIL, BANK OF ENGLAND, INTERNATIONAL MONETARY FUND

Euro Searches For Support, EU Summit To Provide Little Relief

By DailyFX

The Euro bounced back from a fresh yearly low of 1.2614 amid the renewed effort to address the sovereign debt crisis, but the threat of a Greek exit may continue to drag on the single currency as European policy makers continue to move in their own interest. (May 23)

MORE TOPICS: TWITTER, BANK OF ENGLAND, EUROPEAN CENTRAL BANK, MANAGEMENT

Euro crisis pain primes Britain for more stimulus

By Reuters UK

The Bank of England signalled on Wednesday it was likely to pump more money into the struggling British economy if the euro crisis causes more mayhem, and the government flagged new steps to boost growth. (May 23)

MORE TOPICS: UNEMPLOYMENT, IMF, BANK OF ENGLAND, INTERNATIONAL MONETARY FUND, INVESTMENT

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