The Reserve Bank of Australia will announce today if a much-anticipated rate cut will take place. If it does, it may buoy businesses, says Airwallex’s head of ANZ.
If interest rates decline today, businesses may soon benefit from lower borrowing costs, according to Matt Sek, Airwallex’s VP for ANZ.
“If the RBA moves ahead with a potential 25-basis-point cut, we’re likely to see a shift in business sentiment, with renewed confidence in investment, hiring, and expansion both locally and internationally,” says Sek.
That outcome would be good news not just for business operators and owners, but also for Airwallex – which benefits from money changing hands.
“We will see increased demand for international payments and FX solutions as businesses look beyond Australia for growth opportunities,” says Sek.
In November 2024, the global payment and financial operating platform processed more than US$130 billion (AUD$203 billion) in annualised transaction volume. Global revenue climbed 73 per cent in Q3 2024 and the APAC region increased revenue by 83 per cent year over year.
“Airwallex now proudly serves over 150,000 businesses globally, up 50 per cent from last year,” says Jack Zhang co-founder of Airwallex and the company CEO.
Many other large Australian companies also derive significant revenue from abroad
“Airwallex data has found that nearly half of the ASX 100 generated more than 30 per cent of its revenue from overseas. A rate cut would positively impact consumer confidence, potentially driving increased spending and further ecommerce confidence.”
Economic optimism and digital tools may drive growth
“For many Aussie businesses, this could be the catalyst to scale operations, explore new markets, and improve cash flow management,” says Sek.
“Businesses that position themselves strategically—by strengthening their financial operations and leveraging digital tools to manage transactions efficiently—will be best placed to capitalise on this shift.”
The Melbourne-based executive cautions, however, that inflation is not solved completely.
“It’s also critical for companies to remain agile, as global economic conditions and currency fluctuations are likely to continue to create uncertainty,” says Sek.
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