Autumn 2025

As we say goodbye to the heat of summer, we can look forward to enjoying the cooler days ahead. Along with the drop in temperature, the RBA brought much relief to mortgage holders and dropped the cash rate by 25 basis points in February. The cash rate is now sitting at 4.10 per cent following the first rate-reduction since November 2020.

Inflation remained steady in February, at 2.5 per cent and core inflation at 2.8 per cent; however, the RBA remains cautious and has not guaranteed further cash rate cuts in 2025. Some economists are predicting further cuts in 2025, but time will tell.

While there is ongoing tension between Russia-Ukraine and the Middle East, and a looming trade war due to Trump’s proposed tariffs, the global economic outlook continues to remain unpredictable.

US markets reacted to the lower-than-expected consumer spending and continued geopolitical issues, with another month of volatility.

It’s also been volatile on the Aussie share market, with the ASX 200 losing ground earlier in the month, bouncing back to reach an all-time high, only to start falling again to close at it’s lowest point in two months.

A similar pattern has been happening with the Aussie dollar, reaching a high of $0.64US cents mid-February, then losing momentum, and now hovering around $0.62US cents.