The trade-off between Sydney property & a slowing China

With explosive growth in Sydney’s house prices yet to cool and a closer look at recent employment data revealing a pause in the upward trend of the unemployment rate, the RBA is reluctant to cut interest rates further, with interest rates held at 2.0% at this week's meeting . But as the Chinese economy continues to slow as further evidenced by the turbulence in the Chinese A-share market and its effect on the Australian economy, the RBA may be forced to cut rates to 1.5% by the end of 2015. Why? Portfolio Manager Peter Farac looks at why movement in Chinese A-shares matter for Australia and how they are being balanced with the concerns the RBA has with cutting rates (VIEW LINK)