Cash rate floor at 0-0.5%: RBA deputy gov

Reserve Bank of Australia deputy governor Guy Debelle says the floor for the country’s benchmark cash rate is likely about 0 to 0.5 per cent, though he hoped policymakers never have to get down to those levels.

The RBA has chopped rates twice since June to a record low of 1.0 per cent in an attempt to help revive economic growth and inflation.

Financial markets are pricing in another cut later this year and a follow-on move to 0.5 per cent in February.

The RBA has repeatedly urged federal government to boost infrastructure spending and consider structural reforms though Prime Minister Scott Morrison is committed to delivering a promised budget surplus this year.

AAP

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