Capital Economics Sees RBA Raising Rates in Late 2019

The video discusses the economic challenges faced by the Reserve Bank of Australia (RBA), including high household debt and low wage growth. It explores the RBA's dilemma in managing interest rates due to financial stability concerns and the potential impact on the housing market. The discussion also covers the RBA's stance on the Aussie dollar, its optimistic economic forecasts, and the likelihood of these forecasts not materializing, leading to a weaker economic growth and a potential decline in the Aussie dollar.

In what ways does the RBA's optimistic forecast conflict with its stance on the Aussie dollar?

What is the expected relationship between the Aussie dollar and economic growth according to the speaker?