In the February 2021 edition of the Market Update:
- Macroeconomic indicators remain robust, but vaccine supply delays in some regions and the emergence of new Covid-19 strains have dampened sentiment.
- The US congress is negotiating President Biden’s proposed US$1.9 trillion stimulus package, which includes US$1,400 payments to low-income workers.
- The EU has imposed tougher restrictions on visitors and the UK will introduce tighter border controls to prevent the spread of new Covid-19 strains.
- The Biden administration will seek to repair relations with China but will face immediate challenges as China steps up military activity around Taiwan.
- The RBA left the cash rate on hold at 0.1% and announced it will buy an additional $100 billion of Australian government bonds before ceasing purchases in April.
Read the February 2021 Market Update here.