Economic and Market Outlook – October 2025

The information in these articles is current as of 1 October 2025.

This edition covers the following topics:

Australian economy

Is our economy ready to transition from being led by the public sector? How ready is the RBA to act in the face of inflation or can we expect more rate cuts? With household spending holding strong and the jobs market near historic highs, we dissect the staying power of the Australian growth story. Dive into our findings below.

International economy

Tariff fears appear to have largely passed as the world settles into a new, more trade-negative backdrop. Amidst domestic challenges is there enough scope to remain positive on the global economy? Read on to learn more.

Outlook and sector view for Australian equities

FY26 has started on a stronger note as RBA rate cuts supported still loftier valuations. Is the market’s optimism justified? Reality is nuanced with different dynamics powering our key sectors from more rational supply in the commodities space to an emerging recovery in commercial real estate. Find out more in the link below.

Outlook for international equities

Positive sentiment towards AI remains a dominant source of international market growth. However, is this perception built on solid foundations, or are we riding a wave of unjustified AI hype? We examine the possible risks for a slowdown in AI spending as well as the wider outlook for global equities. Discover more on the link below