Further policy action including cuts to interest rates will be required to kick-start the Australian economy in 2017, says Fiducian Investment Management Services.
Commenting on the “slow growth period” affecting many developed economies, Fiducian Investment Management Services manager Conrad Burge said more policy support was needed to support the economy.
“Overall, much remains to be done to lift global growth and, given the current soft economic environment, it is likely that most major central banks will maintain highly expansionary monetary policies for some time to come, with interest rates kept close to historic lows,” he said.
Mr Burge said the global economy is sitting on the edge of a “low-growth trap”, in to which some economies – such as Japan and the European Union – may possibly have already fallen.
Citing comments from International Monetary Fund managing director Christine Lagarde that “without forceful policy actions, the world could suffer from disappointing growth for a long time”, Mr Burge said growth was dependent on political involvement.
“It is hard to see how strong growth can be restored in some economies without a significant political change of direction,” he said.
Read more:
Macquarie adds 74 products to platform
Ditch relative returns, says Monash Investors
Profile Financial Services adds to team
AMP Capital has bought a majority stake in international infra tech fibre company VX Fiber, on behalf of investors in its infrastructure equ...
The Supreme Court has ordered the winding up of Mayfair 101 entity IPO Wealth Holdings. ...
Major investor groups representing more than US$103 trillion in assets have urged companies and auditors to fully reflect the effects of cli...
Subscribe to our newsletter
Copyright © 2020 Investor Daily
Get notifications in real-time for staying up to date with content that matters to you.
Read More