Challenges the Reserve Bank of Australia Faces

The video discusses Australia's economic challenges, focusing on the Reserve Bank of Australia's (RBA) inability to adjust interest rates due to a heated housing market and low inflation. Regulatory measures by APRA and the US Federal Reserve's influence are highlighted. Concerns about high debt levels and economic vulnerability are raised, with potential impacts on consumer spending and government policy. The need to maintain a AAA rating is discussed, with implications for policy tightening and economic growth. The RBA is not expected to change rates until late 2018.

What are the implications of maintaining the AAA rating for Australia's economic policy?

When is the RBA expected to make its first rate hike, according to the analysis?