Australia’s central bank (RBA) cut its cash rate to a record low 1.25% in what could be the first in a series of stimulus measures amid growing calls for policymakers to revive the country’s slowing economy.

“The Board took this decision to support employment growth and provide greater confidence that inflation will be consistent with the medium-term target,” RBA Governor Philip Lowe said.

In a signal that the door was still wide open for further cuts, if need, Lowe said: “The Board will continue to monitor developments in the labor market closely and adjust monetary policy to support sustainable growth in the economy and the achievement of the inflation target over time.”

Australia’s economy has dodged a recession since the early 1990s but is now battling falling home prices, rising unemployment, sluggish consumer spending and lukewarm inflation.

However, Lowe said monetary policy alone will not be enough to boost economic momentum as households were already up to their eyeballs in debt, putting the onus on Prime Minister Scott Morrison to slash income tax and boost spending.