Businesses and consumers caught between opposing forces

Will a second rate cut be enough to settle the nerves of businesses and consumers spooked by global trade uncertainty? Donald Trump’s tariffs have weighed on sentiment in recent months, stifling an expected economic recovery in 2025. Household confidence spiked following the Reserve Bank’s first interest rate reduction in February but the prospect of a global economic slowdown brought about by the US president’s trade war wiped away those gains. Westpac and the Melbourne Institute will release the June update to their consumer sentiment index on Tuesday. Despite a de-escalation in trade tensions between the US and China, uncertainty remains…