RBA Governor Says Rate Cuts on the Table

Australia’s top central banker on Wednesday said the prospect of more interest rate cuts remained on the table, but cautioned that too much easing could lead to longer-term dangers through risk-taking and excessive borrowing.

Reserve Bank of Australia (RBA) Governor Glenn Stevens also noted that the local currency was adjusting lower as desired and having a welcome expansionary impact on the economy.

“A period of somewhat disappointing, even if hardly disastrous, economic growth outcomes, and inflation that has been well contained, has seen interest rates decline to very low levels,” Stevens said at a charity event.

via CNBC

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza