Define accommodating monetary policy daily dating gold


For some central banks, the ultra-low policy rate environment was reinforced with large-scale asset purchase programmes.

In the major advanced economies, central banks pursued significantly divergent policy trajectories, but all remained concerned about the dangers of inflation running well below inflation objectives.

Coupled with this, currently there is lack of change in policy rate but change in policy stance of the RBI.

What is currently driving the interest rate is the easy liquidity situation, which we are seeing primarily through the process of demonetization.

Therefore, you will most often see expansionary policy used after a recession has already started. Banks reduce lending rates, making loans for auto, school, and homes less expensive.