With the import side holding up more strongly than exports for now, the Reserve Bank is unlikely to respond with lower interest rates in the near term.

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.

The residential housing market is well off its peak now. The Reserve Bank remains on hold for now with domestic demand moderating.

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.

India's trade deficit is because of excess of import over exports.

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