U.K. Stimulus Boosting Housing Risks

Bank of England Governor Mark Carney said the U.K. economy needs further policy support and pledged to maintain vigilance over the risks easy money might create for the housing market. “We need to provide a lot of stimulus, but that stimulus can create risks,” Carney said in an interview on the “Charlie Rose” show aired on Bloomberg Television. “We need to take other steps in order to reduce those risks. If we don’t, we’re going to create bigger problems down the road or we’re going to have to pull back too soon on monetary policy, which is the...

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Quantitative easing

An unconventional monetary policy in which the central bank buying government securities or other securities from the market in order to lower interest rates and increase the money supply. Quantitative easing increases the money supply by flooding financial institutions with capital in an effort to promote increased lending and liquidity. Quantitative easing is considered when short-term rates at or near zero, and does not involve printing new banknotes. Typically , the central bank targets the money supply by buying or selling government bonds....

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