Monetary Policy Flashcards
1
Q
Monetary Policy
A
the manipulation of interest rates, the money supply and the exchange rate. today, monetary is associated with the manipulation of interest rates which are set to meet an inflation target which CPI 2% +/- 1%
2
Q
What is the interest rate currently?
A
0.5%
3
Q
What is QE at the moment?
A
£375 Billion
4
Q
Forward guidance
A
setting out a general policy of keeping rates low and not planning to change them until the unemployment rate had fallen below 7% of the labour force
