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Quantitative Easing

1-12 out of 19 results.

The RBA’s QE losses

Accounting losses from a pandemic inspired bond buying spree have wiped out the RBA's equity and more, pushing its balance sheet into negative equity territory. How did it happen and what lessons can be learned?

RBA justifies its QE to QT, but did it drive inflation?

Deputy Governor, Michelle Bullock, explained last week why the RBA bought $280 billion of bonds in its QE programme, but are we paying the price for this stimulus as rising inflation shocks central bankers?

Globalisation is morphing into something less promising

Not long ago, globalisation seemed on a relentless growth path, promising to bring everyone into a global economy. But with politics, pandemics and the Ukraine war, 'geoeconomics’ will lower living standards for all.

Three reasons high inflation may trigger a European crisis

To add to the world's problems, high inflation is exposing Europe's frailties and poorer nations have no independent monetary policies to help their economies. Core problems cannot always be kicked down the road.

Can quantitative tightening help the Fed fight inflation?

The US Federal Reserve's first foray into quantitative tightening from 2017 fizzled. Can asset-selling – aka money destroying – help fight inflation this time around?

Understanding QE and its impact on inflation

With bond rates and Reserve Bank actions driving equity markets and inflationary expectations, it pays to understand what is really happening in both central bank and commercial bank balance sheets.

Most Australians live better than the Rockefellers

It's tempting to focus on the negatives of the pandemic, the US election, the China/US cold war and inequality. But technology is delivering benefits that even wealthy people in the past could not have imagined.

Quantum computing would be a world-changing technological leap

Quantum computers have a theoretical ability to calculate millions of possibilities in seconds, yet it may take time before we see a breakthrough in the practical applications of sub-atomic computing.

Policymakers fear cutting stimulus can lead to recession

Prolonging a recovery with stimulus could lead to a worse slump later. Even today, policymakers are haunted by actions taken in 1937 which led to a loss of production and jobs and a falling GDP.

What do negative rates and other RBA moves mean for investors?

The RBA is likely to first exhaust conventional easing by cutting the cash rate to 0.5% by year end before deploying unconventional measures. Negative interest rates are unlikely.

Watch for one rule that applies to all assets

Most investors think the relationship between interest rates and prices only applies to fixed rate bonds, but the rate impact on discounting future cash flows applies to all income-producing assets.

Five reasons Australian rates unlikely to follow US

It's not long ago when Australian bond rates were well above US bond rates, and now they are the same in the 10 years. Factors affecting Australian monetary policy will not mirror US rises through 2018.

Most viewed in recent weeks

Retirement is a risky business for most people

While encouraging people to draw down on their accumulated wealth in retirement might be good public policy, several million retirees disagree because they are purposefully conserving that capital. It’s time for a different approach.

The perfect portfolio for the next decade

This examines the performance of key asset classes and sub-sectors in 2024 and over longer timeframes, and the lessons that can be drawn for constructing an investment portfolio for the next decade.

UniSuper’s boss flags a potential correction ahead

The CIO of Australia’s fourth largest super fund by assets, John Pearce, suggests the odds favour a flat year for markets, with the possibility of a correction of 10% or more. However, he’ll use any dip as a buying opportunity.

The challenges with building a dividend portfolio

Getting regular, growing income from stocks is tougher with the dividend yield on the ASX nearing 25-year lows. Here are some conventional and not-so-conventional ideas for investors wanting to build a dividend portfolio.

How much do you need to retire?

Australians are used to hearing dire warnings that they don't have enough saved for a comfortable retirement. Yet most people need to save a lot less than you might think — as long as they meet an important condition.

Welcome to Firstlinks Edition 594 with weekend update

It’s well documented that many retirees draw down the minimum amount required and die with much of their super balances untouched. This explores the reasons why and some potential solutions to address the issue.

  • 16 January 2025

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