Capital Economics Sees RBA Raising Rates in Late 2019

The video discusses the economic challenges faced by the Reserve Bank of Australia (RBA), including high household debt and low wage growth. It explores the RBA's dilemma in managing interest rates due to financial stability concerns and the potential impact on the housing market. The discussion also covers the RBA's stance on the Aussie dollar, its optimistic economic forecasts, and the likelihood of these forecasts not materializing, leading to a weaker economic growth and a potential decline in the Aussie dollar.

What are the main economic challenges faced by the RBA as discussed in the video?

• Low interest rates and high savings

• High household debt and low wage growth

• High inflation and low unemployment

• Strong economic growth and high exports

Why is the RBA hesitant to raise interest rates, according to the video?

• To encourage more savings

• To boost inflation

• To prevent a housing bubble

• To avoid increasing household debt

What is the RBA's outlook on economic growth and inflation?

• Optimistic about growth and expects inflation to rise

• Pessimistic about growth and expects inflation to fall

• Neutral about growth and inflation

• Concerned about growth but expects inflation to remain stable

How does the RBA view the current strength of the Australian dollar?

• It wants the dollar to remain stable

• It is indifferent to the dollar's strength

• It prefers the dollar to be weaker

• It wants the dollar to be stronger

What is the expected impact on the Australian dollar later this year, as per the video?

• The dollar is expected to strengthen

• The dollar is expected to weaken

• The dollar is expected to remain stable

• The dollar is expected to fluctuate wildly