Low interest rates were working in Australia, and any further cuts would also be effective, says Reserve Bank of Australia deputy governor Philip Lowe. Dr Lowe told a dinner packed with bank economists that unlike in other countries where poor credit demand had rendered monetary stimulus largely unproductive, Australian investors had responded to the RBA's easing. The cash rate, which has been on hold at 2.5 per cent since August last year, is expected to remain there at least until the middle of next year, according to consensus forecasts. Some outlying forecasters, however, have not ruled out a further cut next ... (full story)