QIC Chief Economist Says RBA Won't Race to Raise Rates

The video discusses Australia's economic conditions, highlighting strong job growth and stable house prices. It explains why the Reserve Bank of Australia (RBA) is not rushing to raise interest rates, unlike other global economies. The RBA's cautious approach is seen as beneficial for Australia's competitive advantage. Predictions about future rate changes are discussed, with some experts suggesting a hold until 2020. The labor market's performance and its impact on wage growth and inflation are also covered.

Why is the RBA not following global peers in tightening monetary policy?

• Because the RBA wants to increase the Australian dollar's value.

• Because the Australian economy is in sync with the global economy.

• Due to high inflation rates in Australia.

• Due to strong job growth and stable house prices in Australia.

What is one benefit of the RBA allowing other central banks to raise rates first?

• It increases the value of the Australian dollar.

• It leads to higher inflation in Australia.

• It decreases Australia's competitive advantage internationally.

• It puts downward pressure on the Australian dollar.

When is the RBA predicted to raise rates according to the discussion?

• In 2018

• In 2019

• In 2020

• In 2021

What is a potential reason for the pessimistic view of no rate changes until 2020?

• A strong global economy.

• A pessimistic view of the Australian and global economy.

• High inflation rates in Australia.

• Rapid recovery in the US and Europe.

How might improving labor market conditions affect the RBA's future decisions?

• It might result in higher unemployment rates.

• It might give the RBA confidence to raise rates.

• It might cause the RBA to maintain current rates indefinitely.

• It might lead to a decrease in interest rates.