RBA Expected to Cut Rates Today, JPMorgan Securities Says

The transcript discusses the Australian economy's current state, focusing on the Reserve Bank of Australia's (RBA) monetary policy and potential rate cuts. It highlights the influence of global economic conditions and other central banks' actions on the RBA's decisions. The housing market's impact on monetary policy is also examined, with insights into credit growth and housing prices in Sydney and Melbourne. The discussion concludes with the challenges faced by the RBA in maintaining competitive interest rates amid global economic shifts.

What assumption underpins the central bank's narrative about the Australian economy?

• An increase in inflation rates

• A rate hike before the end of the year

• A rate cut before the end of the year

• Stable interest rates throughout the year

What is the term used to describe a central bank's action that seems contradictory?

• Bullish hold

• Hawkish cut

• Bearish cut

• Dovish hike

What is the current status of the housing market in Australia according to the central bank?

• A major driver of rate hikes

• A minor constraint to lower rates

• A significant constraint to lower rates

• No constraint to lower rates

How many central banks are expected to cut rates in the fourth quarter of 2019 according to JP Morgan?

• 30

• 22

• 15

• 10

What risk does the RBA face if it does not follow the global trend of lowering rates?

• Increased unemployment

• Decreasing inflation

• Currency depreciation

• Currency appreciation