RBA Cut Rates Due to Global Inflation: Paul Bloxham

The transcript discusses the Reserve Bank of Australia's (RBA) decision to cut interest rates, influenced by global low inflation and interest rates rather than weak domestic conditions. Concerns about reigniting a housing market boom are addressed, noting measures to cool the market. The conversation shifts to global economic trends, including disinflation and deflation, and Australia's adept monetary policy during the mining boom, which contributed to its economic success.

What was a significant reason for the RBA's decision to cut rates according to the economists?

• Strong domestic currency

• High global inflation

• High interest rates globally

• Weak domestic economic conditions

What measures have been taken to prevent a housing market boom in Australia?

• Increasing interest rates

• Tightening lending standards

• Increasing housing supply

• Reducing property taxes

How have house prices in Sydney and Melbourne changed recently?

• They have increased significantly

• They have fluctuated wildly

• They have decreased significantly

• They have leveled out

What was the cash rate in Australia during the mining boom in 2011?

• 6%

• 4.75%

• 2.5%

• 0%

Why did Australia maintain tight monetary policy settings during the mining boom?

• To encourage inflation

• To slow down non-mining sectors

• To boost the housing market

• To increase the cash rate