You are here

RBA still has scope to cut rates; warns against debt-fuelled boom

Key to increasing economic growth above current 2.5% pace is investment by firms outside resource industry

It is "unlikely to be in Australia's long-term interests to engineer a consumption boom by encouraging people to borrow large amounts against future income", says RBA deputy governor Philip Lowe.


AUSTRALIA retains scope to lower interest rates further, the central bank's second in command said, while warning against spurring a debt-fuelled spending boom.

"There is a fairly fine line to tread" in balancing the need to encourage household spending and business