Quantitative easing (QE) refers to large-scale asset purchases by the US Federal Reserve to inject liquidity in the world’s biggest economy after the onset of the global financial crisis in late 2008. In September 2012, stubbornly high US unemployment and faltering economic growth prompted it to launch the third phase of this stimulus (QE3), under which it planned to buy US$40 billion worth of bonds per month, with no set end date. As of late 2012, it had bought some US$2.3 trillion in long-term securities. In December 2012 it announced it was increasing its QE3 purchases to US$85 billion a month.

QE3 boosts price of HK flats, say agents

QE3 boosts price of HK flats, say agents

The third round of quantitative easing (QE3) by the US Federal Reserve has boosted the average price of flats in the 100 major housing estates in Hong Kong to record highs.

Saturday, 6 October, 2012, 3:58am

Quantitative easing - what it is, why it's important

Quantitative easing - what it is, why it's important

Central bankers do not attract much notice if economies are running smoothly. They usually come across as calm, politically neutral and academic. With a steady hand on the levers of monetary policy, they make small adjustments to keep inflation in check and economic growth at a sustainable level.

8 Oct 2012 - 3:14am

MPF back on track in third quarter thanks to QE3

Retirees cannot rest easy as analysts say fund returns still face a bumpy ride in light of the euro-zone crisis and a slowing mainland economy. Photo: David Wong

The city's Mandatory Provident Fund (MPF) turned the corner in the third quarter, helped by monetary easing in the United States last month that boosted stock markets worldwide.

5 Oct 2012 - 2:15am

Warning: quantitative easing could end up causing deflation

Warning: quantitative easing could end up causing deflation

On Monday Monitor looked at the argument that holds that the real purpose of the Federal Reserve's latest exercise in printing money is to pump some inflation into the US economy.

The idea is that rapidly rising prices would shrink debt levels relative to nominal output and encourage consumers to go out and spend before things get more expensive.

19 Sep 2012 - 3:07am 5 comments

HK's stricter mortgage rules may affect sales of older homes

Property prices may still rise further, according to analysts.

The Hong Kong Monetary Authority's move to tighten requirements for second mortgages is expected to slow sales of older homes but is unlikely to trigger a significant price correction, according to property agents.

Midland Realty expects the number of transactions in the secondary residential market could tumble by 11 per cent to 16,000 in the fourth quarter.

18 Sep 2012 - 2:13am

HKMA acts to cool property market after US launches QE3 stimulus

Norman Chan Tak-lam, chief executive of the Hong Kong Monetary Authority

Hong Kong's central bank moved to cool the city's overheating property market by making second mortgages harder to get, but some analysts are betting the new measures won't be enough to dampen prices.

15 Sep 2012 - 9:34am

Artificial stimulus

HSBC economist Qu Hongbin says the launch of QE3 is likely only to have an influence over a short term. Photo: Bloomberg

Stock markets rallied. Gold prices soared. Officials in Hong Kong warned of the comeback of an overheated property market. But apart from pushing up asset prices, the US's money printing, or the so-called third round of quantitative easing, is expected to offer limited help in preventing the ongoing economic slowdown on the mainland and in Hong Kong.

15 Sep 2012 - 3:39am

Market Wrap: Fed QE3 powers HK stocks to more than four-month high

Hong Kong stocks rose to their highest level in just over four months, led by property and commodity-related issues, on speculation that the US Federal Reserve’s potentially unlimited quantitative easing measures will boost asset prices in the region.

14 Sep 2012 - 5:54pm

Fed Undertakes QE3 With $40 Billion in MBS Purchases a Month

The Federal Reserve said it will expand its holdings of long-term securities with open-ended purchases of $40 billion of mortgage debt a month in a third round of quantitative easing as it seeks to boost growth and reduce unemployment.

14 Sep 2012 - 1:18am