March 4, 2020 / 11:17 AM / 3 months ago

Australia central bank has capacity to cut cash rate one more time

SYDNEY, March 4 (Reuters) - Australia’s central bank will not contemplate negative interest rates in the country as it reaches its effective lower bound, Deputy Governor Guy Debelle said on Wednesday.

The Reserve Bank of Australia (RBA) reduced its cash rate to a record low 0.5% on Tuesday, its fourth cut in less than a year, in an effort to blunt the fallout from a rapidly spreading coronavirus epidemic.

Debelle told a parliamentary economics committee in Canberra that the central bank has capacity to reduce the cash rate one more time to 0.25% before it considers quantitative easing. (Reporting by Swati Pandey Editing by Mark Heinrich)

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