RBA Says Housing Market Warrants 'Careful Monitoring'

The video discusses the Reserve Bank of Australia's (RBA) decision to keep the cash rate at 1.5%, highlighting concerns about household debt and the property market. The RBA's financial stability review reveals that many borrowers have minimal mortgage buffers, posing risks to banks. The labor market shows weak wage growth and a shift towards part-time employment, raising concerns about underemployment. Despite some positive full-time job figures, the overall labor market remains weaker than expected.

What was the RBA's decision regarding the cash rate?

• Abolish the cash rate

• Keep the cash rate on hold

• Decrease the cash rate

• Increase the cash rate

What concern did the RBA highlight in its Financial Stability Review?

• Excessive government spending

• Declining foreign investments

• Lack of mortgage buffers among borrowers

• High inflation rates

How did Governor Phillip Lowe's view differ from the previous governor regarding mortgage risks?

• He did not comment on the risks

• He was more optimistic about the risks

• He saw risks as abating

• He expressed more concern about the risks

What trend in employment is causing concern according to the transcript?

• Decrease in part-time employment

• Increase in full-time employment

• Stable employment rates

• Trend towards part-time employment

What is the relationship between wage growth and household debt as discussed in the transcript?

• Both wage growth and household debt are at record lows

• Both wage growth and household debt are at record highs

• Wage growth is at record highs, and household debt is low

• Wage growth is at record lows, and household debt is high