📉 RBA Cuts Rates Again — Relief for Borrowers, Weakness for the Aussie Dollar. SJP WeekWatch
📉 RBA Cuts Rates Again — Relief for Borrowers, SJP WeekWatch, Weakness for the Aussie Dollar
Today, the Reserve Bank of Australia (RBA) announced a second consecutive interest rate cut for 2025, lowering the official cash rate by 25 basis points to 3.85%. This decision reflects growing confidence that inflation is returning to target, with the most recent data showing core inflation easing to 2.9%, well within the RBA’s 2–3% range.
🏡 What this means for you:
Homeowners with an average $600,000 mortgage could save around $90 monthly in repayments.
However, this added affordability may spark increased competition in property markets, particularly in Sydney and Melbourne, which could increase prices again.
First-home buyers may continue to face affordability challenges.
The RBA's dovish tone suggests that further rate cuts are possible. Economists project that the cash rate could fall to 3.35% by the end of 2025.
Snapshot into St. James’s Place WeekWatch for 19th May 2025
Thank you to Alexis Livanes from St. James’s Place Singapore for generously sharing the latest edition of the SJP WeekWatch with the entire community. This week, the update included a variety of essential highlights and insightful information that we believe will be valuable for Aussie Expats.
📈 Economic and Market Highlights.
🧠 Wealth & Mental Health – Financial Health Report 2025
📉 Interest Rates & Global Central Bank Moves
🧭 Investment Outlook
Volatility is the “New Normal”: Tariff disputes, political shifts, and rapid economic changes make short-term predictions difficult.
Long-term Strategy: Sticking to a diversified, long-term investment plan is recommended.
Avoid Emotional Decisions: Investors should ignore market noise and avoid reacting impulsively to short-term stressors.
“Periods of heightened uncertainty are challenging not because of the issue itself, but how investors respond.”
— Joe Wiggins, SJP Investment Research Director
To read our key takeaways and access the link to the full WeekWatch Update, click on the button below.
💱 AUD Update: Aussie Dollar Sinks After Rate Cut
The RBA’s rate decision put immediate pressure on the Australian Dollar, which is now trading at multi-month lows against several major currencies.
AUD/USD: 0.6428 (↓ 0.5%)
AUD/EUR: 0.5748 (↓ ~3.9% YTD)
AUD/JPY: 87.00 (one of the lowest levels in 2025)
AUD/GBP: Also weakened, with a broader downtrend in play
📉 The AUD's weakness may support exporters and tourism but poses challenges for Australians living or investing abroad, especially those transferring funds to Europe, the US, or the UK.
✈️ What This Means for Expats
If you're living overseas or planning international property purchases or investments:
Now may be the time to review your currency transfer strategy.
Consider locking in exchange rates or using forward contracts for known expenses.
For mortgage holders, the rate cut opens refinancing opportunities — potentially even from abroad.
👋 Stay Connected
For tailored financial strategies, mortgage support, or currency solutions, contact the team at THE EXPATRIATE or our partners at Australian Expatriate Finance if you're an Aussie Expat or Best Foot Forward Mortgage Solutions if you're an Australian Living in Australia.
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