The slow speed of vaccine rollout in Australia and the emergence of the delta strain of Covid-19 combined with a worsening global situation means interest rates are likely to remain lower for longer. There will likely be continuing emergence of new strains of the virus in developing countries where Covid-19 remains out of control. The response of worsening health outcomes will dampen economic activity in Australia independently of whether the State government implement lockdowns. The loss of consumer and business confidence implies a need for fiscal and monetary support in Australia for a much more extended period than I had hoped earlier in the year. I would not be surprised to see a W recovery rather than a continuation of the V recovery to date. There is nothing that the RBA can do to offset this outcome apart from maintaining financial stability. It is up to fiscal policy and income support policy for businesses and households to prevent a W-shaped recovery.