Views Article – Sharenet Wealth

Australasia, Forex

Negative interest rates not needed in Australia – RBA’s Debelle

SYDNEY, June 30 (Reuters) – An end to the COVID-19 driven fiscal stimulus by September, as initially flagged by the government, would be a “problem”, Reserve Bank Of Australia Deputy Governor Guy Debelle said on Tuesday.

Debelle also said there was no need for negative interest rates in Australia and that it was not yet clear if they are even effective.

“In all our liaison, no one brings up the cost of borrowing, which is at all time lows here, as a constraint on their willingness…to borrow,” Debelle said, responding to a question following a live streamed speech.

“It seems to me it’s the lack of appetite for borrowing at the moment which is a function of the outlook for the economy which is really the main issue.” (Reporting by Swati Pandey and Wayne Cole; Editing by Muralikumar Anantharaman)

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