Australias deputy Reserve Bank governor warns that there is limited room for interest rate cuts, as inflation pressures and capacity constraints are constraining monetary policy easing.

Andrew Hauser, Deputy Governor of the Reserve Bank of Australia, publicly stated on Monday that the current economy is facing significant capacity constraints, and there is very limited room for further interest rate cuts. Hauser pointed out that the capacity utilization rate of the economy is at its highest level in the past 40 years of recovery, and inflation pressures continue to be above the central bank's target range, which significantly increases the risk of continued loose monetary policy.