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Monetary Policy Terms

FOMC – Federal Open Market Committee
The committee within the Fed that is responsible for decisions relating to monetary policy and other open market operations.

MPC – Monetary Policy Committee
The committee within the Bank of England (BOE) entrusted with decisions relating to monetary policy.

QE – Quantitative Easing

An alternative monetary policy tool aimed at stimulating an economy. It is often displayed by a central bank buying financial assets, effectively injecting a desired amount of cash into the local economy.

RRR – Required Reserve Ratios

A monetary policy tool used by the People’s Bank of China (PBoC) which governs the percentage of deposits that banks must hold rather than lend out. When they lower the required reserve ratios (RRR) this releases more cash into the economy in the form of loans.