Reserve Bank chief hints at further cuts in interest rates as economy falters

Australian dollar falls as Governor Philip Lowe says 'reasonable to expect an extended period of low rates'

The Australian dollar has fallen sharply after Reserve Bank governor Philip Lowe said that the central bank could keep cutting the cash rate in the coming months to support the ailing economy.

After two successive reductions in the rate in June and July left it at an unprecedented 1%, Lowe said in Sydney on Thursday that borrowing costs were likely to remain low for some time.