News
Wealth Pi Fortnightly Economic Snapshot
Interest Rates
As of 24 June 2025, the ASX 30 Day Interbank Cash Rate Futures indicate an 89% market expectation that the Reserve Bank of Australia will cut the official cash rate from 3.85% to 3.60% at its next meeting on 8 July 2025, reflecting sustained market confidence in further monetary easing.
RBA
In May 2025, the RBA cut the cash rate to 3.85% amid easing inflation now firmly within the 2–3% target range, a steady labour market, and weaker-than-expected household consumption, while growing global trade tensions and uncertainty—particularly from recent U.S. tariffs—pose risks to both domestic activity and inflation.
Australian Markets
The consumer price index growth for May slowed to 2.1 per cent year-on-year from 2.4 per cent in April. Market consensus was for CPI expansion to slow to 2.3 per cent. Trimmed mean inflation – the Reserve Bank of Australia’s preferred measure – came in at 2.4 per cent, down from 2.8 per cent. The RBA is watching the data closely to make sure inflation, which is now back in its target band, keeps tracking in the right direction. The Australian economy is barely growing, and consumer spending is skittish as the global growth outlook darkens from tariff uncertainty and conflict in the Middle East.
Global Markets
US:
In May 2025, home prices surged in the hottest U.S. housing markets—particularly in New England—due to fierce buyer demand and limited inventory, with Springfield, MA topping the list and properties in these areas selling significantly faster than the national average.
UK:
UK rent growth slowed to 2.8% in the year to April 2025—its slowest pace in four years—amid easing demand and affordability constraints, yet renters still face strong competition due to persistently low supply, especially in more affordable markets.
Property
Over the past 20 years, Australian residential property outperformed equities with lower volatility. Looking at other property sectors farmland was the top-performing asset class (up 256%), followed by strong industrial growth driven by limited supply, a struggling office sector—especially in Melbourne, highlighting property’s resilience and diversification benefits for investors.
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