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

2177 Views

See similar Economics A Level tutors

Related Economics A Level answers

All answers ▸

What is the multiplier effect?


Explain the main sources of monopoly power.


How could I evaluate a government policy which uses subsidies for a certain industry?


Explain the use of interest rates in the economy.


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