RBA Leaves Cash Rate Target Unchanged at 1.50%

The video discusses the Reserve Bank of Australia's (RBA) stance on inflation and its decision to keep the cash rate unchanged at 1.5%. It highlights the weak first quarter CPI in Australia, strong job market momentum, and weak consumer sentiment. The video also explores the significant trade relationship between Australia and China, emphasizing the impact of US-China trade tensions. The RBA's economic outlook is discussed, noting the need for job improvements to meet CPI targets and the potential impact of the upcoming election on inflation targets.

What is the Reserve Bank of Australia's forecast for underlying inflation in 2020?

• 3%

• 2.5%

• 2%

• 1.5%

Why is the Australian dollar referred to as 'Ground Zero' in trade discussions?

• Because it is the least affected by global trade tensions

• Due to its high value compared to other currencies

• Because it is the most stable currency

• Due to its significant trade relationship with China

What is the significance of the trade relationship between Australia and China?

• China is a minor trading partner for Australia

• Australia exports most of its products to Europe

• China is Australia's largest trading partner

• Australia imports more from the US than China

What does the RBA say is needed to reach the CPI target?

• More government intervention

• Increased consumer spending

• Further improvement in the jobs market

• Higher interest rates

What potential change could the opposition Labor Party consider if they win the election?

• Revisiting the inflation target for the RBA

• Increasing the cash rate

• Eliminating the CPI target

• Reducing trade with China