Australia’s former central bank head warns of limited power of rate cuts: paper

FILE PHOTO: A pedestrian is reflected in a wall of the Reserve Bank of Australia (RBA) head office in central Sydney, Australia, October 3, 2016. REUTERS/David Gray

MELBOURNE (Reuters) – Further interest rate cuts by the Reserve Bank of Australia would do little to boost the economy as the power of monetary policy easing is limited, a former governor of the bank told the Weekend Australian on Saturday.

The RBA this week cut its benchmark rate for the third time this year to a record low 0.75%, in a bid to revive employment growth, consumer spending and inflation, and said it was prepared to cut further if needed.

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