Australia & Global Economic Update

February 2025. The world economy shifts. Policies change. Markets react. Here’s what matters now.

1. US-China Trade War Heats Up

The US handing out tariffs like tic tacs. Expect countries to negotiate or hit back. Supply chains could become stressed on no direction. Inflation is around, markets will likely shake. 

2. Australia Caught in the Crossfire

Australia depends on trade. The US and China pull it in different directions. Tariffs could bite. Policies may shift. The economy walks abit of a tightrope.

3. US Economic Moves: Tariffs Over Sanctions

President Trump plays a new game. Tariffs instead of sanctions. He targets allies and enemies alike. Factories might win, but markets could wobble. Global supply chains face a test.

4. The RBA Will Cut Rates—Even If They Shouldn’t

The Reserve Bank of Australia is set to lower rates. Data suggests they shouldn’t. But they will.

Why the Cut?

  • Global Trends: Central banks worldwide loosen policies.
  • Slow Growth: Australia struggles. Jobs are on the line.
  • Market Pressure: Investors expect it. The RBA delivers.

The Risks:

  • Inflation: Rate cuts might let it slip.
  • More Debt: Borrowing gets easier. Debt piles up.
  • Asset Bubbles: Cheap money fuels speculation. Housing could surge.

The Bottom Line

Trade wars rage. Policies shift. Rates fall. Smart financial moves matter more than ever. Stay informed. Stay ready.

View our Advisory Team video here.

Questions on how this affects you? Let’s talk.