This month:

• Shutdowns, isolation, and social distancing measures have had a profound impact on consumer‐facing sectors and have resulted in large spikes in unemployment.
• Central banks around the world have embarked on unprecedented emergency lending and bond buying programs to combat the economic effects of the coronavirus.
• The Bank of England forecasts UK GDP to contract by 14% in 2020, driven by a 25% decline in the June quarter, to be followed by a rapid recovery.
• The Reserve Bank of Australia kept rates on hold at 0.25% at its May meeting and continued targeting the 3‐year government bond yield at the same rate.
• Growth in new coronavirus cases in Australia slowed significantly in April, although a second wave of infections could eventuate if restrictions are eased too quickly.

Read the full Market Update prepared by Lonsec here.