|Published : 22 Sep 2016, 15:21:34|
Another rate cut possible: RBA chief
The new Reserve Bank of Australia (RBA) governor Philip Lowe has not ruled out having to cut the official cash rate again, despite being at a record low.
Lowe told a parliamentary hearing that financial markets are factoring in a 50 per cent probability of a further interest cut from 1.5 per cent to 1.25 per cent, local media reports.
"That's possible, it going to depend on a whole range of factors," Lowe told the House of Representatives economics committee on Thursday.
These include what happens overseas, the next Australian inflation data, and how the labour market and housing markets are performing.
"Certainly there are scenarios where rates would fall again, there are scenarios where they wouldn't need to fall again," he said.
The Reserve Bank of Australia has already cut the cash rate twice this year, according to a news agency report.