Quantitative Easing (QE)

Quantitative easing (QE) is an unconventional monetary policy in which a central bank creates money to buy assets (mainly government bonds) on the open market, pushing down long-term interest rates and boosting liquidity. It is used when policy rates are already near zero and conventional rate cuts no longer work. In forex, QE typically weakens the issuing country's currency because it expands the money supply.