Policy Easing

Definition ∞ Policy easing refers to the relaxation of monetary or fiscal policies by governments or central banks. This typically involves measures such as lowering interest rates, reducing reserve requirements for banks, or implementing quantitative easing programs. The objective is generally to stimulate economic activity and increase liquidity in the financial system.
Context ∞ Policy easing measures by major central banks are closely watched for their potential impact on cryptocurrency markets. News frequently analyzes how changes in interest rates or quantitative easing programs can influence investor appetite for risk assets, affecting the capital flows into and out of digital assets, and consequently, their price action and market valuations.