In the US, GDP expanded at an annualised rate of 3% in Q2, though weaker labour market data and tariff disruptions highlighted vulnerabilities. Inflation edged up to an annualised rate 2.9%, and markets are now focused on a possible Federal Reserve rate cut in September. Equities remained steady as investors balanced solid growth against ongoing policy uncertainty.
In Australia, inflation eased to 1.9% year-on-year in June, while retail sales strengthened. Consumer sentiment lifted slightly, although external pressures from tariffs continued to weigh on trade. The RBA responded by cutting the cash rate by 25bps to 3.6% in August, with further easing likely if disinflation persists.
Across Europe, the European Central Bank held rates steady amid subdued growth and softening business confidence. The UK moved to cut rates, while Japan and China both faced weak trade flows and fragile momentum, underscoring persistent global headwinds.
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Published on 26 Aug 2025