Australia’s central bank may be preparing to cut interest rates again in an effort to combat unemployment and boost wage growth and inflation.

This would mark an additional decrease from its current record low level of 1.25%.

The Reserve Bank of Australia’s (RBA) policy meeting in June led the board to conclude cutting rates by a quarter point would be the best option for the economy, but would also need to be accompanied by other measures.  

Infrastructure spending and economic reform were also being targeted to help employment.

“Given the amount of spare capacity in the labour market and the economy more broadly, members agreed that it was more likely than not that a further easing in monetary policy would be appropriate in the period ahead,” minutes of the policy meeting revealed.

As Reuters reports, an additional rate cut to 1% by August has already been priced in by financial markets, and another move to 0.75% by early 2020.

Tuesday’s minutes revealed that the board decided rate cuts would decrease the Australian dollar’s value and consequently boost the economy.

Lower rates would also result in reduced debt repayments by households and lower borrowing costs for businesses.

The board also addressed concerns surrounding the risk of household borrowing and inflation increasing, saying it is unlikely to happen.

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