RBA says cuts on the way if needed

The Reserve Bank of Australia (RBA) has got plenty of room to make more interest rate cuts if they are needed, the Bank’s deputy governor has claimed.

Speaking to the Urban Development Institute of Australia National Congress in Brisbane, Ric Battelino said that Australia had put up a strong fight against the global economic meltdown, adding that the RBA’s interest rate cuts had already helped many first-home buyers and homeowners through this tough period.

"The monetary policy transmission process has been effective and there remains scope to ease policy further if circumstances require," he said.

According to the AAP, he added that the majority of Aussies had decided not to spend the cash handout given by Rudd and the gang, with most people preferring to either take advantage of their low-interest home loans by making overpayments or clearing debts owed on credit cards and loans.

The RBA will make its next interest rate decision on April 7th.

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