RBA’s Guy Debelle says the central bank remains ready to lower interest rates

From www.thepropertyobserver.com.au
By Jonathan Chancellor
Tuesday, 26 February 2013

The Reserve Bank of Australia assistant governor Guy Debelle has sent a signal that the central bank remains ready to lower interest rates if needed to counter the high dollar.

But Dr Debelle warned that low official interest rates could generate excessive credit growth, surging asset prices and other imbalances.

“We still obviously retain scope to lower interest rates further, should the need arise, including to counterbalance the pressures of an elevated exchange rate,” he said.

“The cash rate still has the largest influence over lending and deposit rates, even if the relationship is not exact,” he told the audience of Adelaide University students.

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