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General TradingQ
Quantitative Easing (QE)
A monetary policy tool used by central banks to stimulate the economy by purchasing government bonds and other financial assets, thereby increasing the money supply and lowering interest rates. QE is typically deployed when conventional interest rate cuts have been exhausted and further stimulus is needed.
Example
“When the Bank of Japan announced an expansion of its QE program, the yen weakened significantly against the dollar as traders anticipated increased money supply and lower yields.”