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Central banks are expected to remain generally on hold for the summer.
However, with the recent uptick in coronavirus cases around the world, many analysts are starting to speculate that they might look for ways to increase stimulus.
Here are the key points to consider ahead of the BOE and RBA policy decisions this week.
How Bad is it Getting in Australia?
A little more than a week ago, what was until then a “hotspot” of COVID cases in Melbourne turned into a full-blown community spread. This put an end to Australia’s otherwise effective COVID policy and halted plans for reopening.
So far, the outbreak remains confined to the state of Victoria, which reported 98% of new cases on Sunday (and 12 of the remaining 16 were in neighboring New South Wales).
Even if the outbreak is confined to Victoria, the state will likely be under lockdown for an extended period of time. Victoria also accounts for almost a quarter of Australia’s GDP.
So far, no country has managed to...
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