RBA Expected to Hold Rate at 1.5%

The video discusses the central bank's decision to maintain the cash rate at 1.5% amid a two-speed economy in Australia. It highlights the economic reversal where the East Coast is booming while Western Australia struggles. The impact on housing prices in Sydney and Melbourne is examined, along with potential macroprudential measures. Inflation remains below the RBA's target, and the new governor, Phillip Lowe, is open to tolerating lower inflation rates temporarily. The appreciating Aussie dollar further compresses inflation, with no significant changes expected until 2018.

What measures might the central bank consider to address the housing market issues?

What is the current inflation rate in Australia compared to the RBA's target?