Daily Commentary BY THE CURVE TEAM –

Brisbane Lockdown Another Curveball

30th of March, 2021

The Brisbane lockdown vindicates the uncertainty that remains in the economy.

The re-emergence of covid cases in Brisbane has led to states shutting borders and holiday plans being thrown in to disarray.

Over the past few months, optimism has dominated the outlook but covid re-emerging in Brisbane counters this. It comes just ahead of the Easter period where consumer spending hypothetically should lift.

It also comes just before the end of JobKeeper. All act as a reminder of the uncertainty and the downside risks that remain to the outlook.

This is part of the reason the RBA and other central banks are remaining dovish on monetary policy. By providing clear guidance that they will keep policy lax until inflation rises sustainably, and employment returns any bumps in the road like the covid lockdown have less impact on the outlook.

It is another quiet day of data ahead. The main updates will come through tomorrow and Thursday.

The number of covid cases will be the main point of interest today.

Josh Stewart

Associate - Money Markets