SYDNEY, Oct 8 (Reuters) - Worries that the current low interest rate environment will destabilise Australia's economy is probably overdone, Australia's central bank head of economic research John Simon said on Thursday.
Speaking at a conference in Sydney, Simon also said given weak global growth, low rates are "entirely appropriate."
Some financial market commentators have raised concerns about the dangers of keeping rates low for too long, including the propensity for accumulating debt and riskier investment behaviours which could potentially destabilise the economy.
"Now, there will undoubtedly be problems in the future. But I suspect they will, as has happened so many times through history, come from an unexpected direction," he said.
"So rather than fighting the last battle again, it is important to look ahead and try to discover the seeds of the next recession or crisis before it happens."
Simon said his comments are his personal views and have no particular monetary policy implications.
The Reserve Bank of Australia this week left interest rates unchanged at a record low 2.0 percent for a fifth month and appeared content with the current interest rate setting.