What is quantitative easing?

Updated
Quantitative easing is a complicated monetary policy
Quantitative easing is a complicated monetary policy

The Bank of England chose to keep the base rate on hold at 0.5% again this month, despite the economy having grown by just 0.1% in the second quarter of the year.

Instead, it will try to boost the economy by purchasing bonds worth £75 billion – a policy known as quantitative easing (QE). But just what is QE? And how does it help?

Advertisement