Calls for the RBA to consider cutting are very premature. Despite recent house price falls prices are still well above levels 3 years ago in major capitals. The global environment is complicated by Brexit and US-China trade tensions, but Europe and the UK have been irrelevant to Australia’s growth in the past decade. The key international factor is declining economic growth in China, but growth there is more likely to slowly slow than to crash. With rates still below neutral the medium to longer term level for rates should be higher rather than lower.