RBA chief: Lower rates still capable of supporting demand

Sydney

INTEREST rate cuts may not have the same power in boosting demand as they once had, but they can still help support an economy that is struggling through a period of below-trend growth, Australia's central bank chief said on Friday.

Speaking to lawmakers at his twice-yearly parliamentary testimony, Reserve Bank of Australia (RBA) governor Glenn Stevens said it was with this in mind that the bank decided to cut interest rates last week.