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(Image: AAP/Dan Peled)

The Reserve Bank’s momentous monetary policy changes to be announced at 2.30pm can’t come too quickly as the global economy, led by Europe and the US, heads for deflation and recession thanks to the continuing rise in COVID-19 infections, a new round of lockdowns and the growing fears of political instability in the US after tonight’s election.

This is pretty much a perfect storm for Western economies -- with the few "upside risks" (namely, the orderly replacement of Trump by Biden, a rapid vaccine, an end to lockdowns and the widespread fear of infection) still highly uncertain.

Domestically, it's a very mixed bag at best for the economy.