ANZ's Emmett previews the RBA decision

The video discusses the Reserve Bank of Australia's (RBA) monetary policy, focusing on expected rate hikes to combat inflation, which remains high despite soft economic data in Australia. The impact of these rate changes on mortgage stress and the property market is examined, with a particular focus on Sydney. The potential risk of a recession is considered, though strong household savings and a robust labor market may mitigate this. The video also addresses communication challenges faced by the RBA and the future of its leadership.

What is the expected cash rate after the RBA meetings in April and May?

• 5.0%

• 4.1%

• 3.5%

• 4.5%

What recent economic data in Australia has been described as 'soft'?

• High inflation and strong GDP

• Strong GDP and high wages

• Low unemployment and high personal consumption

• Soft GDP and weak wages

What percentage of borrowers are on variable rates and managing well despite higher rates?

• 80%

• 70%

• 60%

• 50%

What is a potential consequence of the RBA raising rates to control inflation?

• Economic recession

• Lower savings

• Higher GDP

• Increased employment

What is the current unemployment rate compared to pre-pandemic levels?

• Higher than 5%

• Around 3.5%, lower than pre-pandemic

• Exactly 5%

• Around 4.5%, similar to pre-pandemic

What has been a major communication misstep by the RBA?

• Announcing rate cuts in 2023

• Promising no rate rises until 2024

• Predicting a recession in 2022

• Guaranteeing a strong labor market

What factor is expected to help households manage higher interest rates?

• Decreasing inflation

• High unemployment

• Rising property prices

• Large household savings