Economic accommodation

Economic accommodation is a policy action taken by a central bank to support economic growth by making borrowing cheaper and more accessible. This typically involves lowering interest rates and/or increasing the money supply to encourage spending, investment, and employment. The goal is to stimulate economic activity, especially during downturns or periods of slow growth. While it can boost the economy, it also carries risks like inflation if overused. Essentially, it’s a tool used to help keep the economy stable and growing when facing headwinds.