What is Tapering and Quantitative Easing?
US Fed Reserve has recently indicated the need for ‘Tapering’ owing to inflationary pressure. Not long ago we were hearing ‘Quantitative Easing’.
We demystify both these terms in simple words.
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Global Central Bank Policy Rates
From – 0.75% (Switzerland) to almost Zero in most of Europe to around 4% in India, Central Banks in most economies remain accommodative. Although inflation mostly remains benign, some high inflation economies like Argentina (38%) and Venezuela (39%), have their plates overflowing with challenges. While the GDP projections are encouraging, whether cheaper credit can fuel a rebound in economic activity, remains to be seen.