Stop the Press: Bank doesn’t want profit-eating QE!

Advertisement

Hoocoodanode! At Domain:

One of Australia’s top bankers has warned against using unconventional monetary policy in an attempt to boost the domestic economy, saying it could undermine international investor confidence and have a precipitous impact on bank profit margins.

The chief executive of Westpac’s institutional bank, Lyn Cobley, also said she did not think even cheaper credit would spark higher demand from big businesses, and it was “obvious” the government could use the budget more actively to stimulate growth.

The full text of this article is available to MacroBusiness subscribers

$1 for your first month, then:
Cancel at any time through our billing provider, Stripe
About the author
David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.