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ECO043 Quarterly Economic Update: April – June 2025 (730 words)
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ECO043.docx
Description
Our latest quarterly economic update includes current share market volatility, the Middle East conflict, the impact of Tariffs on markets and threats of rising inflation. The Australian housing market and interest rates are also discussed.
Introduction
The June quarter of 2025 has been a rollercoaster for the financial markets. Investors and policymakers had to deal with a mix of good news and bad – on the one hand, inflation fell, but then a war broke out in the Middle East and to make it even more interesting, Donald Trump introduced a blanket of tariffs on imports on every country in the world.
War in the Middle East
Middle East tensions erupted into all-out war as an exchange of strikes between Israel and Iran in mid-June sent new ripples through global markets. This caused the price of Oil to spike initially before retracing.
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