Analysts urge caution on deep RBA rate cuts and looser lending buffers from APRA

With interest rates almost certain to be slashed next month, the Reserve Bank is being warned to be careful in cutting too deeply below the already record low levels. 

Analysts say dramatic reductions would leave the RBA with less of a buffer to deal with a further deterioration in Australia's economy or a shock from China. 

The calls for caution come after the banking regulator APRA said it planned to loosen current restrictions on home loans to stimulate credit growth and ease the housing downturn.

Here's my report on The World Today