We are confident that these reductions are helping the Australian economy and supporting the gentle turning point in economic growth. In doing so, low interest rates are supporting jobs and overall income growth. At the same time, though, we recognise that monetary policy is not working in exactly the same way that it used to.
We also recognise that low interest rates hurt the finances of many people, particularly those relying on interest income. So there is a balancing act here. The Board is prepared to ease monetary policy further if needed. Having said that, it is extraordinarily unlikely that we will see negative interest rates in Australia.