Australia’s economic data suggests promising prospects although the viral threat continues to persist. Strong results for business surveys suggest that Australia’s economic recovery has considerable momentum. Car sales and housing construction activity are showing exceptional strength. The Reserve Bank’s monetary policy settings remain highly supportive with guidance that cash interest rates should remain steady until 2024.
However there has been another virus outbreak in Sydney which has spread across the continent. Lockdowns and stay at home guidance have come into place for some capital cities in the last week of June (Sydney, Brisbane, Perth and Darwin) which may temper economic activity over coming months. This has spurred demand for vaccinations but supply constraints and debate over the suitability of the Astra Zeneca vaccine for the under 60s are slowing uptake.
Article written 6 July 2021.
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