Quantitative easing (QE) is an unconventional monetary policy used by a central bank when interest rates are already near zero.

To support the economy, the central bank buys securities—such as government bonds—from commercial banks. This process performs the following actions:

• Injects liquidity (cash) directly into the financial system.
• Increases the total money supply.
• Encourages banks to offer more loans to businesses and individuals.

The main goal of QE is to promote spending and investment by making credit easier to get. However, it can also lead to risks such as inflation or the creation of asset price bubbles.