Investing.com - Borrowing costs "per se" are not holding back growth in Australia, Reserve Bank Governor Glenn Stevens said speaking in parliament Wednesday, adding that the central bank maintains an open mind about a further easing of monetary policy.
"The board has maintained an open mind about whether we may need to lower interest rates further. At this point, however, there are few serious claims that the cost of borrowing per se is holding back growth," Stevens said.
"On the contrary, monetary policy is supporting higher spending by altering incentives as between spending and saving, and working to create an environment in asset and credit markets that eases the restraints on some sorts of activity."
Australia's benchmark cash rate stands at a record low 2.5% as part of an easing cycle started in November 2011 as the economy gets set to move away froma resources investment boom to consumption-led growth.
"The board has maintained an open mind about whether we may need to lower interest rates further. At this point, however, there are few serious claims that the cost of borrowing per se is holding back growth," Stevens said.
"On the contrary, monetary policy is supporting higher spending by altering incentives as between spending and saving, and working to create an environment in asset and credit markets that eases the restraints on some sorts of activity."
Australia's benchmark cash rate stands at a record low 2.5% as part of an easing cycle started in November 2011 as the economy gets set to move away froma resources investment boom to consumption-led growth.