Nomura Says Risks Indicate Lower RBA Cash Rate

The transcript discusses the Reserve Bank of Australia's (RBA) policy expectations, highlighting a potential cut in the cash rate by the end of 2017. It outlines the challenges faced by the RBA, such as high household debt and low wages, which complicate policy adjustments. The RBA is seen as reluctant to cut rates, but economic underperformance and slowing house prices may pressure them to consider further stimulus.

What are the implications of record household debt and soaring house prices on monetary policy?

In what ways might the RBA consider further stimulus if the economy continues to underperform?