Economic Outlook

Outlook 

Australia’s economy is showing more promising signs with October marking the end of lockdowns in New South Wales and Victoria. The NAB Business survey and ANZ-RM Consumer Confidence surveys have made solid gains while retail sales rebounded in September. However, price pressures appear more persistent than transitory with the September quarter Consumer Price Index showing annual headline inflation at 3% and underlying inflation at 2.1%. This has seen a sharp lift in Australian government bond yields in late October as markets question the Reserve Bank’s guidance of maintaining the cash interest rate at 0.1% until 2024.

Article written 4 November 2021.

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