Low-interest-rate policy

What does low-interest-rate policy mean?

All central bank measures targeted at reducing the interest rate level of the respective currency or at keeping low are summarised under the term of low-interest-rate policy. These measures are usually meant to combat deflation to increase the amount of money in circulation. The central bank also wishes to attract investors, as loans in the domestic currency are subject to a low interest rate. The central banks intervened heavily and introduced a policy of low interest rates for years in order to support the economy and protect it from a worse recession following the economic crisis of 2008.