RBA's Lowe: “If ever there’s a time to borrow, now is it”

Dhwani Mehta FXStreet

In an interview with Australian TV, ABC, to be aired later on Monday, the Reserve Bank of Australia (RBA) Governor Phillip Lowe said, "we shouldn't be worried" about government debt.

He added: "It's the right thing to do... we have the capacity to borrow, our interest rates are as low as they've ever been, the Australian Government has a long record of responsible fiscal policy, so the budget accounts are in reasonable shape. And if ever there's a time to borrow, now is it."

"I gave an outline to them of my thinking, and they've done exactly the same with me," Lowe said.

AUD/USD reaction

RBA Governor Lowe’s upbeat remarks appear to bode well for the aussie, as it helps AUD/USD recover some losses to trade around 0.6350.

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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