June economic update: RBA says vaccinations are key to reducing ongoing uncertainty Jun 14, 2021


The Reserve Bank of Australia (RBA) says that the risks around COVID-19 will diminish once more of Australia’s population are vaccinated.

As Victoria undergoes the state’s latest lockdown, the RBA says the possibility of significant outbreaks will remain an ongoing source of uncertainty until vaccination numbers increase.

Unemployment continues to decline

Despite this latest outbreak, RBA Governor Phillip Lowe said that Australia’s economic outlook continues to be strong, and that progress in reducing unemployment has been faster than expected. The unemployment rate declined to 5.5% in April.

“Job vacancies are at a high level and a further decline in the unemployment rate to around 5% is expected by the end of the year,” Governor Lowe said.

The Bank also indicated they may consider injecting more stimulus into Australia’s economy in the form of additional bond purchases.

Strong super growth continues in April

As of 30 April 2021, the Intrust Super Balanced option sits at 13.76% for the financial year from 1 July 2020.

Strong performance in Australian sharemarkets has been buoyed by optimism about the low levels of community transmission of COVID-19, as well as the commencement of Australia’s vaccine rollout (despite a few setbacks).

Internationally, markets have been a little more up and down. Investors were encouraged by new stimulus plans in the US, as well as the global vaccine rollout, while new lockdowns in Europe and the seven-day blockage of the Suez Canal in March caused some concern. This caused some volatility across recent months.

It’s important to remember that superannuation is a long-term investment. Intrust Super’s portfolio is well-diversified, actively managed and designed for the long-term. Our Balanced option continues to deliver strong long-term returns of 8.29% and 7.08% over 10 and 20 years respectively to 30 April 2021, which are above the median of 7.86% and 6.86% respectively.