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Home > Monetary Policy > What is quantitative easing?

What is quantitative easing?

Quantitative easing (QE) is an unconventional form of monetary policy where a Central Bank creates new money electronically to buy financial assets, like government bonds. This process aims to directly increase private sector spending in the economy and return inflation to target.

Watch the video below which explains QE and how it works and see our Frequently asked questions on Quantitative Easing (QE).





Key Resources

Quantitative Easing (QE) - Injecting money into the economy 

The United Kingdom’s quantitative easing policy: design, operation and impact 
Quarterly Bulletin, 2011 Q3 

​The Distributional Effects of Asset Purchases 
12 July 2012

Money creation in the modern economy
By Michael McLeay, Amar Radia and Ryland Thomas of the Bank’s Monetary Analysis Directorate.