Reserve Bank of Australia (RBA) Deputy Governor Philip Lowe said on Tuesday that the central bank could ease its monetary policy further to support demand growth.

"As the Reserve Bank has indicated for some time, this low inflation outlook provides scope for easier monetary policy should that be appropriate in supporting demand growth in the economy. An important factor here will be whether the growth in aggregate demand continues to be sufficient to accommodate the growth in our labour force," he said.

Lowe noted that he would prefer a weaker currency which should help to rebalance the economy.