RBA's Lowe urges government to stimulate investment

FXStreet (Łódź) - RBA Deputy Governor Philip Lowe said today at a conference in Sydeny on Tuesday that current low global interest rates can create new risks if they linger in a poor investment climate.

He urged the Australian government to take action in order to boost investment, as monetary policy has its limits in that respect.

"Monetary policy cannot drive the higher ongoing expected returns on capital that are required for sustained economic growth and for reasonable long-term returns to savers,” Lowe stressed. “It is instead government policy - including in some countries, increased spending on infrastructure - that has perhaps the more important role to play here.”