Australia’s central bank open to further easing, with caveats

By: | Published: June 10, 2015 9:35 AM

Australia's central bank on Wednesday said it was "open to the possibility" of more interest rate cuts if needed, while cautioning that ever easier policy had risks given households were already burdened with a large amount of debt.

Australia’s central bank on Wednesday said it was “open to the possibility” of more interest rate cuts if needed, while cautioning that ever easier policy had risks given households were already burdened with a large amount of debt.

In a speech to a business lunch, Reserve Bank of Australia (RBA) Governor Glenn Stevens called for policy makers to create “upside risks” to economic growth with a heavy focus on the need for more spending on infrastructure.

“We remain open to the possibility of further policy easing, if that is, on balance, beneficial for sustainable growth,” said Stevens, who cut rates to a record low of 2 percent in May.

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