accommodative monetary policy

accommodative monetary policy definition - finance
A policy of having low interest rates; a central bank is attempting to stimulate economic growth by lowering short-term interest rates. If interest rates are lower, more people and businesses may borrow money, thus stimulating growth. The opposite is a tight monetary policy, which signifies increasing interest rates. Accommodative monetary policy may also be referred to as easy monetary policy.

Webster's New World Finance and Investment Dictionary Copyright © 2003 by Wiley Publishing, Inc., Indianapolis, Indiana.
Used by arrangement with John Wiley & Sons, Inc.

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