Conclusion In response to the severe impact of the pandemic on economic activity and financial markets, the Australian authorities have provided unprecedented support, including via fiscal, monetary and prudential policies. Monetary policy has been focused on supporting the economy by keeping the cost of borrowing low and helping to maintain the supply of credit to households and businesses.
According to ECB staff estimates, in an hypothetical scenario where the US raises tariffs on all imports of goods by 10 percentage points, and its trading partners impose the equivalent on US exports, US GDP could be up to 2½% lower than in the baseline in the first year alone.