This report provides an analysis of the Australian economy, focusing on the economic slowdown observed in the second half of 2018. It examines various contributing factors, including the housing market crisis, China's economic slowdown, and declining wage growth. The report explores the Reserve Bank of Australia's (RBA) monetary policy decisions, specifically the lowering of the cash rate, and discusses both the potential benefits and adverse effects of such policies, such as impacts on bank profits and shareholders. The analysis references several sources to support its claims, offering a comprehensive overview of the economic landscape and the challenges faced by the Australian economy. The report highlights the interconnectedness of global and local factors in shaping Australia's economic trajectory, offering valuable insights into the complexities of economic decision-making and the implications of policy interventions.