Soft Landing

Soft landing means the economy slows down without falling into a serious recession. In simple terms, it happens when inflation cools, growth slows, and the job market weakens only slightly. A soft landing is important because it is often the goal when a central bank raises interest rates to fight inflation. The aim is to reduce price pressure without causing major job losses or a deep economic downturn. For example, if inflation falls from a high level while unemployment stays relatively low and the economy keeps growing slowly, people may call it a soft landing. A soft landing is not the same as a perfect economy. Growth may still be slower, borrowing may still be expensive, and some businesses or workers may still feel pressure.