Australia’s top central banker on Wednesday said the prospect of more interest rate cuts remained on the table, but cautioned that too much easing could lead to longer-term dangers through risk-taking and excessive borrowing.
Reserve Bank of Australia (RBA) Governor Glenn Stevens also noted that the local currency was adjusting lower as desired and having a welcome expansionary impact on the economy.
“A period of somewhat disappointing, even if hardly disastrous, economic growth outcomes, and inflation that has been well contained, has seen interest rates decline to very low levels,” Stevens said at a charity event.
