Monetary Easing

Monetary easing is a process used by a country's central bank to stimulate the economy by making it easier to borrow money. This is typically done by lowering interest rates or buying government bonds, which increases the money supply in the financial system. When loans become cheaper, businesses and consumers are more likely to spend and invest, helping to boost economic growth. It’s often used during economic slowdowns or recessions to encourage activity and prevent unemployment from rising. Overall, monetary easing aims to make financing more accessible, supporting a healthier, more dynamic economy.