Exclusive-Australia’s central bank debates if monetary policy is restrictive, deputy governor says

By Stella Qiu

SYDNEY (Reuters) -A top Australian central banker said on Wednesday that there was increasing debate about whether the current cash rate of 3.6% is restrictive enough to keep inflation in check, adding that the question is critical for the policy outlook.

In an interview with Reuters in Sydney, Reserve Bank of Australia (RBA) Deputy Governor Andrew Hauser said the current judgment that monetary policy is mildly restrictive is central to the expectations that inflation would still slow in the economy.

“I think our best guess is that policy is still marginally restrictive, but that judgment is an increasingly important part of the policy challenge,” said Hauser.

“If it turns out that the judgment is we are no longer mildly restrictive, that has important implications for ou