Easing

How it is used

Usually monetary easing. An easing cycle is a series of rate cuts; quantitative easing is easing through large asset purchases. Analysts discuss the pace of easing and whether easing is premature. The opposite is tightening.

Example sentences

1. The bank began its easing cycle with a cut of 25 basis points.

2. Some economists warn that premature easing could bring inflation back.

Common collocations

• monetary easing
• easing cycle
• pace of easing
• premature easing
• further easing

Related terms

• tighteningA policy of making money and credit more expensive or harder to get, mainly by raising interest rates, in order to slow demand and bring inflation down.
• rate cutA reduction in the central bank's main interest rate, usually made to make borrowing cheaper and to support growth and jobs.
• dovishFavouring lower interest rates or looser monetary policy, usually because supporting growth and jobs seems more urgent than fighting inflation.
• quantitative easingA policy in which a central bank creates new money to buy large amounts of government bonds or other assets, aiming to lower long-term interest rates.
• monetary policyThe actions a central bank takes to influence interest rates, the money supply and credit in order to control inflation and support the economy.

More terms: Central Banks and Interest Rates

• interest rate
• central bank
• policy rate
• rate hike
• inflation target
• money supply
• hawkish
• credit
• real interest rate
• hold rates
• monetary policy committee
• foreign exchange reserves