Australia’s economic revival is being challenged by the extended lockdown in Sydney and recent outbreaks in Melbourne and Brisbane. Business and consumer surveys have softened while weekly payroll data shows that employment has stagnated. Mitigating this slowdown risk has been increased budget support from the Federal and State Governments. The Reserve Bank’s monetary policy settings also remain highly supportive with guidance that cash interest rates should remain steady until 2024.
Article written 5 August 2021.
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