Markets were disappointed by the RBA response to rising bond yields yesterday, says NAB’s Rodrigo Catril, creating a dramatic move up in yields. The Aussie also hit another multi-year high driven by rising commodity prices as reflation gather momentum.
Monday 22nd February 2021
Unless you’ve been hiding in a bunker (as many of us have) you’ll be aware that Boris Johnson will be announcing the schedule for the easing of lockdown measures today. Phil Dobbie says most papers this morning already have it planned out, as the UK’s vaccine rollout programme continues at pace and ahead of schedule. He explains why Israel will be an interesting test case in the next few weeks – they have rolled out vaccines quickly too, but also opened up shops and schools immediately afterwards. Have they moved too soon? But there’s one western democracy where vaccines aren’t entirely welcome. Listen in for more. You’ll also hear property expert Russell Quirk’s views on house prices. He says they are going to rise this year, even though many other experts are forecasting a downturn. With interest rate slower for longer, and the potential for inflation when the economy eventually bounces back, isn’t increased housing demand inevitable?
GDP in Q1 1.5% down on Q4. Hardly surprising given the lockdown. The economy is still 8.7% smaller than just before the pandemic, whereas US GDP is close to where it was, thanks to massive government spending.
