In the August 2020 edition of the Market Update:
- The impact of the Covid-19 pandemic on the global economy has been profound, especially in emerging, low-income economies with limited health care capacity.
- Trade tensions between the US and China added to market volatility, while the outcome of the November US presidential election remains uncertain.
- A port explosion in Beirut killed at least 135 people and severe flooding in southern China added to the country’s woes, displacing millions from their homes.
- The Reserve Bank of Australia (RBA) kept rates on hold at 0.25% at its August meeting and indicated it will resume purchases of 3-year government bonds.
- Harsher restrictions in Victoria following a spike in Covid-19 cases could cost the Australian economy $9 billion, according to the federal government.