How Australian investors can play RBA quantitative easing

Many Australians are still unfamiliar with the term ‘quantitative easing’ (QE), which many professional investors say is the reason why asset prices and global economic growth continue to be supported. But what exactly is it? In this interview, Jasmin Argyrou, Portfolio Manager at Credit Suisse Private Banking Australia, explains that QE is a process whereby central banks buy government and corporate bonds to drive down the cost of borrowing after “cash rates have reached rock bottom levels”. The idea is to make cheap borrowing even cheaper to stimulate consumer and business borrowing activity. The RBA hasn’t gone down this road yet – but the risks are rising that it will need to. And it happens, Argyrou says certain investments could benefit. She expands on that view further in this interview.

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