What to Expect From the RBA Policy Decision

The video discusses the global and domestic economic improvements, highlighting recent positive economic indicators from the US and China. It covers the current cash rate and potential risks associated with financial stability, housing affordability, and household debt. The Reserve Bank's future projections include possible cash rate increases in 2018, considering the ongoing economic recovery.

What recent economic developments were highlighted in the US and China?

• A decline in manufacturing

• Blockbuster PMIs

• Increased unemployment rates

• Decreased consumer spending

What is the current cash rate mentioned in the discussion?

• 2%

• 1.5%

• 3%

• 2.5%

Why might the Reserve Bank be cautious about tightening the cash rate?

• It could boost consumer spending

• It might harm economic recovery

• It could lead to increased inflation

• It would decrease foreign investments

What financial concerns are associated with the current cash rate?

• High inflation rates

• Low employment levels

• High house prices and household debt

• Decreasing GDP

What is the predicted action of the Reserve Bank regarding the cash rate in 2018?

• Increase the rate twice

• Keep the rate unchanged

• Increase the rate once

• Decrease the rate