Economic Video Update – December 2020

November was an extraordinary month for the global and local economy. Early indications are that swift action by the government and the RBA have limited the impact of the COVID recession.

Economic growth is now forecast to contract 4% in 2020, before rebounding 6% in the year to June 2021.

Joe Biden’s US election victory released a pressure valve on global markets with US shares reaching new historic highs and Australian shares rising more than 9% over the month.

The Reserve Bank has kept the cash rate at its current record low of 0.1%. The cash rate is not anticipated to be increased for at least three years.

 

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