RBA’s Lowe: We still have room to move on rates

The Reserve Bank of Australia still has scope to lower interest rates further, but is remaining tight lipped about the likelihood of future cuts.

“We still have scope to lower interest rates if we need to, that doesn’t mean we’re going to but we have scope to do that,” RBA deputy governor Philip Lowe told a Corporate Finance Forum event on Monday.  “Nothing has changed in that dimension.”

Dr Lowe said when the central bank changed the cash rate, like it did in May, it wanted the focus to be “on the decision rather than what comes in the future”.  The comments come after the RBA cut interest rates to an historic low of two per cent on May 5.