Reserve Bank Governor Philip Lowe (Image: AAP/Joel Carrett)

Despite Australia coming through the pandemic lockdown much more quickly than expected, and with far fewer casualties, the economic impact is proving more significant than optimistic policymakers, who confidently spoke of building a bridge across the crisis, initially thought.

To labour the metaphor, the bridge may be shorter, but the other side remains shrouded in deep fog and we’ve no idea what the ground looks like.

RBA governor Philip Lowe yesterday gave an online address to a finance conference and his carefully chosen words went a little further than previous statements in noting that the recovery will very much will depend on the confidence of businesses and consumers to get back to normal.