QE (economics/finance)---An
acronym meaning “quantitative easing” which is a new wave monetary policy
tool, at least here in the US.
The Federal Reserve bought rounds of US securities including treasuries and mortgage backed securities (MBS) in an effort to support the economy. Lowering the interest rate was not an option as it hovered near zero. There was a QE1, QE2, and a QE3 programme to help get through the storm. In September of 2014, the ECB announced it will undertake similar measures.
It is January of 2015, and it becomes clear that the definition of QE could also be expanded to include currency pegs, and the buying of foreign and private sector bonds as well. During this month, the Swiss National Bank stopped its currency peg to the Euro…which was sustained through the buying of Euro dollars…ending for now at least, the pegged rate of 1.20 Euros for a CHF (Swiss Franc). The CHF subsequently strengthened against all other currencies. All wait in anticipation of the ECB’s meeting on January 22nd of 2015 when the details of the ECB’s quantitative easing programme will be revealed. Thanks to the entire crew above for the mention.
The Federal Reserve bought rounds of US securities including treasuries and mortgage backed securities (MBS) in an effort to support the economy. Lowering the interest rate was not an option as it hovered near zero. There was a QE1, QE2, and a QE3 programme to help get through the storm. In September of 2014, the ECB announced it will undertake similar measures.
It is January of 2015, and it becomes clear that the definition of QE could also be expanded to include currency pegs, and the buying of foreign and private sector bonds as well. During this month, the Swiss National Bank stopped its currency peg to the Euro…which was sustained through the buying of Euro dollars…ending for now at least, the pegged rate of 1.20 Euros for a CHF (Swiss Franc). The CHF subsequently strengthened against all other currencies. All wait in anticipation of the ECB’s meeting on January 22nd of 2015 when the details of the ECB’s quantitative easing programme will be revealed. Thanks to the entire crew above for the mention.