02 Apr The coronavirus pandemic and the economy – a Q&A from an investment perspective

Key Points:

• Significant government support is essential to enable parts of the economy to successfully hibernate.
• This will be financed by borrowing and is affordable given Australia’s relatively low public debt and low borrowing rates.
• Central bank support to keep financial markets functioning properly is also essential and quantitative easing is part of this.
• We are more likely to see a U-shaped recovery than a V or L.

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