Reserve Bank of Australia Governor Philip Lowe said the interest rate is set to follow a steady path and ruled out any reduction as it boost household borrowing.
He noted that lower interest rate would encourage risky lending and threaten financial stability.
"There is a balance to be struck. Too much borrowing today can create problems for tomorrow, because debt does have to be repaid," Lowe told parliamentary committee.
In an opening statement, he reiterated that the Australian economy is set to grow by around 3 percent this year and next.
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April 24, 2026 15:15 ET Economics news flow was relatively light this week even as the conflict in the Middle East continued, raising concerns for policymakers. In the U.S., spending data, initial jobless claims and pending home sales were the highlights. Business confidence in the biggest euro area economy was in focus in Europe. Inflation data from Japan gained attention in Asia.