Confidence increasing
COVID numbers have plunged in New South Wales, and are now falling in Victoria, and in turn consumer confidence increased to its highest level in 16 weeks as lockdown conditions now ease.
SEEK's latest job ads figures posted a nice 10 per cent rebound, to be 44 per cent higher than they were two years ago.
The uplift has been consistently strong across all industries.
Source: SEEK
The Reserve Bank noted that some uncertainties remain - perhaps vaccine efficacy could wane over time, or a new strain of the virus could hit.
But overall, Australia's plan to reopen into summer looks to be progressing surprisingly well to date.
Yield curve control has now been ditched, it was formally announced today, although the RBA will continue to purchase $4 billion of government securities per week until at least February 2022 to continue building the "bridge to the other side" of the COVID recession.
It was also conceded by the Governor that the cash rate could rise before the end of 2023, though the central scenario is still for the cash rate to remain at 0.10 per cent until 2024.
Financial markets still appear to believe that the recovery will be faster, stronger, and rate hikes will come sooner.
Governor Lowe reiterated in a webinar speech that he wants wages and inflation to be sustainably higher before rate hikes are countenanced.
