Market Update July 2025
Despite expectations of a rate cut, the Reserve Bank of Australia (RBA) held the cash rate at 3.85% at its July meeting. With recent inflation data broadly in line with forecasts, the RBA Board opted to wait for a little more information before making further changes.
The upcoming inflation and labour market data will help to confirm whether the RBA cash rate remains on track to return to the 2 to 3 percent target range.
Global Overview
Globally, economic conditions remain mixed. The US and other major economies continue to manage the impact of shifting trade policies, including new tariffs, while navigating the tail end of inflationary pressures. Central banks have slowed the pace of interest rate cuts and are taking a cautious, data-driven approach as they monitor inflation and demand.
Although the risk of a major global slowdown has eased slightly, there is still uncertainty around how trade tensions and high levels of government debt may influence global growth over the next 12 months. Many households and businesses overseas, like in Australia, are taking a cautious approach to spending while waiting for greater clarity on economic conditions.
Australian Outlook
Inflation in Australia has eased significantly from its peak in 2022. In the March quarter, headline inflation sat at the midpoint of the RBA’s target range, while underlying inflation was 2.9 percent. The RBA’s May forecasts expected inflation to continue moderating, supported by earlier interest rate increases.
Household incomes have improved modestly, and there are signs that some financial stress indicators have eased. However, spending remains cautious, and some sectors are still under strain. Labour market conditions remain tight, with many employers continuing to report difficulties filling roles. Wages growth has slowed slightly, but weak productivity continues to be a concern.
The July interest rate decision passed with a 6 to 3 vote from the Monetary Policy Board in holding the rate steady. The RBA noted that monetary policy remains well positioned to respond if global or domestic risks emerge but, for now, prefers to wait for more data before making further changes. The Board remains focused on its mandate to maintain price stability and full employment and will continue monitoring economic indicators closely before its next meeting.
Skyring Update
At Skyring, we remain focused on delivering steady income and preserving capital for our investors. As the interest rate environment evolves, we continue to see strong interest in income-generating investment options that prioritise transparency and risk management.
Fund inflows into the Skyring Fixed Income Fund and the Skyring Platinum Fixed Income Fund have remained stable, as investors seek consistent alternatives amid ongoing uncertainty. Our team remains committed to careful due diligence and disciplined portfolio management, aligned with our long-term approach.
Looking Ahead
With a new financial year underway, this is an ideal time to review your financial goals. If you are considering investment options that provide regular income and prioritise capital stability, we encourage you to speak with your financial adviser or consider what is appropriate for your circumstances.
To learn more about Skyring or our Funds, contact us on 1300 73 72 74
or click here to request an information pack today.
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Important Information:
This blog post is for general information only and does not consider your personal circumstances, financial needs, or objectives. You should read the Product Disclosure Statement carefully before investing. Past performance is not a reliable indicator of future results. Investments carry risks including possible loss of capital. No guarantee is made regarding the repayment of capital or the payment of income.
As with all investments, returns are subject to market conditions and the performance of the underlying assets.
The figures in this blog are for illustrative purposes only and based on indicative distribution rates. Actual returns may vary.
Past performance is not a reliable indicator of future performance. The rates of return from the Fund are not guaranteed. An investment in the Fund is not a bank deposit and is subject to investment risk, including the loss of capital invested.
This rate of return is subject to the performance of our related entity, Skyring Capital Pty Ltd and/or Skyring Securities Pty Ltd.
You should consider whether the investments are suitable for you or seek personal advice from a licensed financial planner before making an investment decision.
To invest in this Offer, investors should obtain and read the PDS and TMD before making an investment decision.
TMD and PDS for this product are available from our website or request a copy by contacting us on 1300 73 72 74 or request one from your Financial Advisor. Investments may only be made by completing the application form attached to the Product Disclosure Statement or via our online application service.
Skyring Asset Management Limited ACN 156 533 041 holds Australian Financial Services License (AFSL) 422902. Skyring has registered the Skyring Fixed Income Fund ARSN 622 775 464 with the Australian Securities and Investments Commission (ASIC). Skyring Asset Management Limited ACN 156 533 041 AFSL 422902 is the issuer and manager of the Skyring Fixed Income Fund ARSN 622 775 464. Skyring has registered the Skyring Platinum Fixed Income Fund ARSN 646 317 982 with the Australian Securities and Investments Commission (ASIC). Skyring Asset Management Limited ACN 156 533 041 AFSL 422902 is the issuer and manager of the Skyring Platinum Fixed Income Fund ARSN 646 317 982.
Withdrawal rights are subject to liquidity and may be delayed or suspended. See PDS for more information.
Skyring’s address is Level 2, 2 Gardner Close, Milton, QLD, 4064. Our reply-paid postal address is Reply Paid 88076, Kenmore, QLD 4069. You can contact us by telephone on 1300 73 72 74 or via email at investor@skyring.com.au.
