The Reserve Bank forecasts the economy will contract 6% this year before rebounding 5% in 2021.
The recent company reporting season provided an insight into the financial impact of COVID-19 on the economy and for investors.
Only 75% of ASX 200 companies reported a net profit in the year to June. Full-year earnings were down 38% on aggregate, while dividends were down 36%.
53% of companies either cut or didn’t pay a dividend, a move that will affect investors who depend on dividend income from shares.
The current cash target rate of 0.25% has been left unchanged and is expected to remain at its current level for the foreseeable future.
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Sara Ann Millard is an Authorised Representative (No. 242535) and Tax (Financial) Adviser of Crown Wealth Group Pty Ltd (AFSL 494274) and is sub-authorised by FINANCIAL HORIZONS (CAIRNS) PTY LTD Authorised Representative (No. 243012). Any information or advice provided on this site is general in nature only and does not constitute personal or investment advice. We will not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from the use of or reliance on such information. You should seek independent financial advice prior to acquiring a financial product. All securities and financial products such as derivatives or instruments transactions involve risks. Please remember that past performance results are not necessarily indicative of future results.