SYDNEY, Oct 13 (Reuters) - Australia's central bank still has scope to lower interest rates if needed, though easing further would likely have less impact on economic activity than in the past, a top official said on Tuesday.
Answering audience questions after a speech, Reserve Bank of Australia (RBA) Deputy Governor Philip Lowe said the domestic economy was on track for a gradual pickup and that unemployment had stabilised.
Asked about the risk of a recession, Lowe said the probability was low right now, but a downturn could not be ruled out at some point in the future.
Lowe also said increased supply in the housing market was helping slow home price growth in Sydney and Melbourne, but played down fears of a sharp retreat in prices.