Central bank stimulus makes people happier and financially better-off, Bank of England study says

  • Date: 13-Jul-2020
  • Source: Markets Insider
  • Sector:Financial Services
  • Country:GCC
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Central bank stimulus makes people happier and financially better-off, Bank of England study says

Central bank easing actually improved household well-being and happiness following the global financial crisis, the Bank of England said in a study published Friday.

Monetary policy used to pad against the financial crisis prompted concerns of growing inequality and worsened financial health.

Yet the Bank of England's actions in both 2007 and 2014 "had a positive and significant impact on household wellbeing" compared to a hypothetical where no relief measures were implemented, the researchers said.

Younger households with large debts benefited the most from the monetary loosening, and older households reliant on savings income were at the greatest risk of slightly detrimental effects, the bank found.

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Monetary policy used to pad against economic collapse had positive effects on household well-being and happiness, the Bank of England found in a study published Friday.

Central banks around the world began unprecedented asset purchase programs and pushed interest rates to zero in the wake of the financial crisis. While the policies helped pull economies from the brink, concerns around growing inequality emerged. A 2017 survey showed UK households viewing lower interest rates as detrimental to their financial health.

Yet easing measures served as a boon for the public and the greater economy,