More action is needed from governments..........>

RBA: More action is needed from governments globally to help build a platform

for investment and a return to more normal rates of interest, Reserve Bank of

Australia Governor Philip Lowe said Tuesday, joining the chorus of central

bankers calling for increased fiscal policy. Speaking in Melbourne after the RBA

cut rates for a third time in five months to a record low 0.75%, Lowe said that

any return to rate normality needed to address the factors which were hindering

investment, mainly that "the global appetite to save is high relative to the

global appetite to invest". Lowe's comments echo those of outgoing ECB president

Mario Draghi, who said the ECB was reaching the limits of what it could achieve

through its monetary policy and that it was time for government action. Earlier

Tuesday, the RBA cut its official cash rate by 25 bps to 0.75% and said it

stands ready to ease rates again "to support sustainable growth in the economy."

In his speech, Lowe said the cuts were made with the conviction that "monetary

policy still works," particularly to "support employment, jobs and income growth

across the economy," he said. "Today's decision, together with our decisions in

June and July, will assist on each of these fronts."