February | Interest Rates, Trump, and what do they mean to you

As we step into 2025, the economic landscape is buzzing with change and opportunity. Recently, the RBA surprised many by cutting its cash rate to 4.1% from 4.35% after 13 consecutive rate hikes. This move signals growing confidence that inflation is finally moving toward the 2–3% target—though the RBA remains cautious about further easing. Expectations are that additional cuts may come in May and August, potentially taking the cash rate down to 3.6% later this year, with another cut possibly on the horizon next year.

But it’s not just interest rates that are stirring the pot. Trump’s tariff policies continue to create uncertainty on the global stage. With tariffs on countries like Canada, Mexico, and China, the rules of trade are still in flux. While some tariffs might be negotiated away, others could become permanent, adding an extra layer of volatility to the market.

So, what does this mean for you? Are you ready to adjust your financial strategy in light of these changes? How might lower rates boost your spending power or affect your investments, and what could the tariff uncertainties mean for global and local markets? Imagine planning for a family beach day—while you can’t control the weather, you can pack your sunscreen, snacks, and cricket bat to be prepared for whatever comes your way. In the same spirit, a proactive financial strategy can help you navigate these market shifts with confidence.

We invite you to dive deeper into these big questions with us and explore how the evolving economic environment might shape your financial journey in 2025. What opportunities will you seize? How will you adapt your plans to make the most of what’s ahead?

Let’s face the future together—armed with knowledge, strategy, and a healthy dose of curiosity.