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The Reserve Bank of Australia (RBA) has highlighted how global trade shifts and economic uncertainty are affecting Australian households, businesses, and interest rates. Find out how this impacts borrowing, inflation, and how to make smarter financial choices.

Keywords:

RBA speech 2025, global trade Australia, Australian economy, inflation and interest rates, consumer spending, monetary policy, cashback savings, economic outlook, Reserve Bank of Australia

What happens in China, the U.S., or Europe might feel far away — but it can hit your mortgage, shopping habits, and even your cashback earnings here in Australia. In a recent speech titled “Joining the Dots: Exploring Australia’s Economic Links with the World Economy”, the Reserve Bank of Australia (RBA) gave some eye-opening insights into how international events are directly impacting our wallets.

Delivered by Assistant Governor Sarah Hunter on 3 June 2025, the speech explained that Australia’s economy is more connected to the world than ever — and that global trade tensions and financial uncertainty are having real effects at home.

Here’s what you need to know.

Global Trade Tensions = Local Impact

With rising tariffs, trade barriers, and shifting global alliances (think U.S.–China tensions and changing EU policies), global trade has become more unpredictable. The RBA pointed out that these disruptions affect how goods flow, how prices are set, and where companies invest.

For Australian consumers, this means:

• Imported goods may cost more due to tariff ripple effects.
• Exporters could face lower demand, affecting jobs in key industries.
• Global uncertainty may slow investment, reducing economic growth.

How It Affects Interest Rates and Inflation

The RBA has already started reacting to these international pressures. In May, it cut the cash rate to 3.85%, citing a need to support the economy amid global uncertainty and slower inflation.

Why should you care?

• Lower interest rates could reduce your mortgage repayments.
• Saving returns may dip, meaning finding smarter ways to grow your money is key.
• Consumer confidence may shift, as people balance caution with opportunity.

Smart Moves in Uncertain Times

While we can’t control global trade policy, we can make smart personal finance decisions. Here’s how to stay ahead:

Track rate changes

If you have a mortgage or loan, keep an eye on interest rate moves. Even small changes can save you thousands if you refinance at the right time — especially if lenders are offering cashback for switching.

Be a smart shopper

Tariff-driven price hikes may impact some products more than others. Use apps and websites (like WithCashback!) to compare prices, find deals, and get rewards.

The Bottom Line

The RBA’s message is clear: What’s happening globally is no longer distant noise — it’s directly influencing your cost of living, borrowing power, and financial choices. Staying informed and using tools like cashback platforms can help you stay ahead in an unpredictable world.

At WithCashback, we’re here to help you make the most of every dollar — no matter what’s happening in the world economy.