In spite of the generally positive mood investors remained concerned by the
ongoing spread of the Delta variant of Covid-19, and whether it could derail the
recovery in major economies.
It became apparent that lockdowns in large parts of Australia would persist for longer than initially anticipated. As a result, economists downgraded economic growth forecasts and pushed back their expectations of when the Reserve Bank of Australia might start to raise interest rates.
The presidential election in the US on 5 November could dominate headlines during October, before the next meeting of the Federal Reserve later that same week. Investors are already debating whether a further reduction in borrowing costs in the US could be announced following this meeting.
The global economy is being shaped by conflicting triggers. These include productivity-boosting technology innovations, geopolitical tensions and the strident efforts of central banks to bring inflation under control. We examine the economic outlook and discuss the implications for your retirement savings.
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