What is the purpose of loose monetary policy?

Loose monetary policy is where the Bank of England make the decision to decrease interest rates, therefore lowering the cost of borrowing money and lowering the reward of saving money, meaning more spending occurs.

AG
Answered by Alexander G. Economics tutor

2145 Views

See similar Economics A Level tutors

Related Economics A Level answers

All answers ▸

Could you explain the distribution of the incidence of a tax and why it may fall differently on consumers and producers?


What is market failure?


What is the difference between the RPI and CPI rate of inflation


Describe how diminishing marginal returns affect a firm's average cost.


We're here to help

contact us iconContact ustelephone icon+44 (0) 203 773 6020
Facebook logoInstagram logoLinkedIn logo

MyTutor is part of the IXL family of brands:

© 2026 by IXL Learning