Finance - RBA Faces Rough Economy
Reserve Bank of Australia chief Phillip Lowe says all options are on the table as the economic outlook worsens.
Mr. Lowe says these options include cutting interest rates to zero or negative levels and implementing unconventional policies such as quantitative easing.
"It's possible we end up at the zero (rate) lower bound. I think it's unlikely but it is possible," said Mr. Lowe told MPs at a House of Representatives Standing Committee on Economics. "We're prepared to do unconventional things if the circumstances warranted it."
Last month, the US Federal Reserve cut rates for the first time in more than a decade. Four countries - New Zealand, India, Thailand and the Philippines - cut their official rates, and others are expected to do the same next week.