The Reserve Bank has no need to tighten or to ease rates.

We don't think there is anything to warrant a rate move from the central bank. Even though building approvals rose in November, housing is still in correction mode.

The Reserve Bank has said rates won't go up this year but are unlikely to go down and I think they'll maintain that position right through the fourth quarter.

Since the Reserve Bank of Australia raised rates in March, the housing market has just been going sideways. Rates are on hold until the third quarter of this year.

Employment is likely to be much weaker going forward and the jobless rate will keep rising as the economy cools. Interest rates are on hold.

We've been expecting exports to pick up some of the slack of the easing domestic demand and we're not seeing this to date. So clearly there are capacity constraints out there that remain.