Australian stock markets during the COVID-19 pandemic
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the COVID-19[female[feminine The pandemic has disrupted many parts of Australia’s economy, including stock markets. These markets play an important role in our economy, particularly as a source of financing for businesses and in the transmission of monetary policy.
This article describes how the Australian private securities markets weathered the impact of the COVID-19[female[feminine shock. As the pandemic intensified, stock market volatility rose sharply and some assets became difficult or expensive to trade. The Reserve Bank, along with Australia’s federal, state and territorial governments, have put in place policies to support the economy and ensure that financial institutions can continue to lend to households and businesses. These measures helped to support conditions in the securities markets, which improved considerably from mid-2020. In turn, the recovery in securities markets has helped support the availability of low-cost financing for Australian businesses and households. Overall, volatility in these markets at the start of the pandemic was brief compared to the global financial crisis.
financial markets, composition of funding, pandemic, securitization
