accommodative
uh-KOM-uh-day-tiv
/əˈkɒm.ə.də.tɪv/
Describing a monetary policy designed to stimulate economic growth by keeping interest rates low and credit accessible.
Refers to a friendly, helpful policy environment aimed at encouraging business borrowing.
The story behind the word. From Latin ad- (to) + commodus (fitting, suitable). An accommodative monetary stance fits and caters to the borrowing needs of businesses.
Word relationships
- expansionary: Expansionary is broad macroeconomic terminology; accommodative highlights central bank willingness to ease credit.
- restrictive: Restrictive policy deliberately slows growth by raising rates and tightening money.
Commonly confused with
- tighten: Accommodative policy lowers rates to foster borrowing; tightening raises rates to constrain borrowing.
Word family
- accommodate (verb): To adapt to or provide for needs.
- accommodation (noun): Adjustment or financial assistance.
Collocations
- accommodative stance
- accommodative policy
- accommodative conditions
Example sentences
- "The Federal Reserve maintained an accommodative policy stance to help lower unemployment." Central bank stance
- "Investors expected equity markets to rally while financial conditions remained accommodative." Market forecast
Memory hook
ACCOMMODATIVE policy ACCOMMODATES buyers by offering cheap credit. Easy credit to accommodate growth.
When not to use
Avoid using to mean personally polite or helpful when writing financial reports.
Fun facts
- Central bank policy descriptions often shift between 'accommodative', 'neutral', and 'restrictive'.
Explore more words
accommodating, Monetary Policy, accommodate, conducive, Interest rates, permissive
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