Intelligent Investor

Central banks are getting a little reckless

Anton Tagliaferro gives his opinions on the actions of central banks globally and explains how he is dealing with the challenges this is creating for value investors.

By · 12 Mar 2015
By ·
12 Mar 2015
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"I've been in Australia for 30 years and I have never seen rates being cut when the economy is OK. Normally, rates are cut as drastically as they are being cut right now, when things are terrible … I don't think we need an interest rate cut … Interest rate cuts are a very blunt tool, they should only be used in the event that you need to stimulate directly into peoples pockets to get things happening. And I don't think things are that bad. Unfortunately, all it is going to do is dislocate the Sydney property market and encourage these people to borrow seven, eight, nine hundred thousand dollars just to buy a two bedroom little place somewhere – because they think they are doing the right thing while interest rates are low."

In this video Anton gives his opinions on the actions of central banks globally and explains how he is dealing with the challenges this is creating for value investors. Watch the full interview

Insight by Anton Tagliaferro is Investment Director, Investors Mutual via Livewire Exclusive.

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