Market Update - March 2021
Welcome to the March edition of the Market Update.
Economic data confirms a sufficiently V-shaped recovery, but growth has not been even across regions and downside risks remain.
The $1.9 trillion American Rescue Plan is set to move through congress and includes a third stimulus payment of $1,400 and extended unemployment insurance.
Vaccine rollouts have been plagued by supply shortages in Europe but sentiment indicators are improving as markets see a path back to normality.
China has set a relatively modest GDP growth target of over 6.0% for 2021, after being the only major economy to achieve a positive growth rate through 2020.
The RBA left the cash rate on hold at 0.1% at its March meeting and reiterated its commitment to the 3-year bond yield target.