News
Wealth Pi Fortnightly Economic Snapshot
Interest Rates
As of 21 August 2025, the ASX 30 Day Interbank Cash Rate Futures indicate a 30% market expectation that the Reserve Bank of Australia will cut the official cash rate from 3.60% to 3.35% at its next meeting on 30 September 2025.
RBA
On 12 Aug 2025, the RBA Board decided to lower the cash rate by 25 basis points to 3.60%, citing continued moderation in inflation (returning towards the 2–3% target range) and easing labour market conditions, while noting that uncertainty in the global and domestic outlook persists. The decision was unanimous, with the Board reaffirming its commitment to price stability and full employment, emphasising a cautious, data-driven approach and readiness to act decisively if global or domestic risks emerge.
Australian Markets
The monthly CPI indicator showed an annual inflation rate of 2.8% for the 12 months to July 2025. This was a significant jump from the previous month’s 1.9% in June 2025 and is the highest recording in the last 12 months.
Australia’s unemployment rate fell to 4.2% in July 2025, as employment rose by 25,000 people, driven by a 60,000 increase in full-time jobs partly offset by a 36,000 decline in part-time work. The number of unemployed decreased by 10,000, pushing the employment-to-population ratio up to 64.2% while the participation rate held at 67.0%. Hours worked rose 0.3% in the month, outpacing employment growth, while underemployment edged down to 5.9% and underutilisation declined to 10.1%.
Global Markets
In August 2025, U.S. GDP rebounded 3.0% while unemployment rose to 4.2% on weak job growth. Housing inventory climbed 25% year-over-year, slowing price gains to 1.3% as more homes stayed on the market longer. Regional shifts showed stronger multifamily builds, migration-driven demand in Texas, and new zoning reforms in the Pacific Northwest.
In August 2025, the UK housing market gained momentum after the Bank of England cut the base rate to 4%, easing mortgage costs and boosting buyer demand. Yet the average asking prices fell 1.3%, with 34% of sellers lowering prices in a high-supply market. Sales rose to their strongest July since 2020, helped by competitive pricing and faster transactions. London saw the sharpest monthly drop (-2.6%), while Wales held steady, up 3% on the year. The average 2-year fixed mortgage rates eased to 4.49%, improving affordability, though further cuts look limited.
Property
In August 2025, Australia’s housing market extended its recovery, with property values rising for the sixth straight month. National property values have risen by 0.6% per month, supported by low supply and expectations of rate cuts improving borrowing capacity. Listings remain 20% below the five-year average, while sales volumes rose 1.9% and auction clearances stayed above decade average since mid-May, highlighting resilient demand. However, affordability pressures persist, with buyers facing limited stock and renters hit by record-low vacancy rates. This imbalance is driving competition across the market, keeping both prices and rents on an upward path.
Disclaimer
Information contained herein has been prepared by Wealth Pi Fund Pty Ltd for the purpose of information only. It does not constitute an offer for sale, or solicitation for the purchase, of securities, units or other investments. It is intended as a general guide only. This information does not constitute personal advice and has been prepared without taking into account your objectives, financial situation or needs. You should consider these matters before acting on the information. You need to consider the Information Memorandum (IM) for a product, which are only available for eligible investors, before making a decision whether to acquire or hold interests. All views expressed in this document are those of Wealth Pi Fund and should not be construed as an offer or recommendation at any time. Wealth Pi Fund recommends investors seek professional advice before making any investment. Past performance of any product described on this site is not a reliable indication of future performance. Wealth Pi Fund has taken care to ensure all content within this document is accurate, however Wealth Pi Fund (or any other company or associated entity) does not make any representation or warranty that such information is accurate or complete, nor do they accept any liability for harm, loss, costs, or damage arising from the use or reliance on the information. Any investor must satisfy itself by its own investigation and by undertaking all necessary searches and enquiries as to the accuracy and comprehensiveness of all information contained within this document or otherwise made available to it by any one of the entities.
