Reserve Bank of Australia Gov. Glenn Stevens on Tuesday appeared to leave open the possibility of further interest-rate cuts, but said the current record-low rate was appropriate for now.
During an appearance before a business audience Tuesday, Mr. Stevens was asked whether the benchmark interest rate of 2.5% was low enough to support the resource-rich economy, which is struggling under the weight of a slowing mining-investment boom.
“I still maintain up to this point we are doing what can reasonably be done,” he said. “If there’s more that can reasonably be done at some point, then obviously we will do that.” Australia’s benchmark rate has been at historic lows for almost a year as a slowdown in the mining sector drives up unemployment, which is currently at the highest level in a decade. Some sectors such as housing have responded well to the low rate, but much of the rest of the economy has been sluggish for at least the past two years.