By contrast, while financial market sentiment has improved, to the extent that Brexit and US-China trade policy uncertainties remain far from fully resolved, a sense of caution from businesses may continue for some time yet. In recent months, coronavirus is a human tragedy that has emerged that we will need to monitor, through all three channels.
The SARS virus in the 2000s provides some potential parallels, particularly through the effects on travel and confidence.18 15 See the Monetary Policy Handbook (Williams, et al., 2019). 16 See DiSavino (2020) for a discussion of the recent volatility in oil markets. 17 See Capital Review Decisions (2019) and the Reserve Banks’s Credit Conditions Survey.