Daily Commentary BY THE CURVE TEAM –

Daily Insights – Vaccines Key to Confidence

16th of September, 2021

Consumer Confidence

  • Up 2% for the month to be 106.2.
  • The difference between those vaccinated and unvaccinated remains large.
  • Those unvaccinated or undecided (16%) on whether to get the vaccine have a sentiment of 90. This contrasts to those who have had one dose or intend to get one, with sentiment being 103.7 and 121.6 respectively.
  • Therefore, the availability of the vaccine to more age groups is likely a key driver of resilient sentiment.

OECD on Fiscal Policy and RBA

  • With monetary policy stretched, the OECD acknowledged that fiscal policy would bear the brunt of supporting the economy in future downturns.
  • The OECD believe an independent body should monitor the government’s spending and budget, as deficits and spending have increased drastically during covid.
  • Similarly, the OECD supported the RBA undergoing an independent review, which include scrutinising the ‘central bank mandate, policy tools, methods of public communication, hiring processes and internal structures’.
  • The drastic actions of the RBA during Covid, including reaching the lower bound of interest rates (without going negative), the introduction of QE and average inflation targeting warranted a holistic review.

Josh Stewart

Associate - Money Markets