Westpac boss Brian Hartzer says falling rates having "perverse" impact on economy

Westpac's chief executive Brian Hartzer has warned that more interest rate cuts might have a "perverse" impact on the economy. 

Speaking at his six monthly grilling before a parliamentary committee, Mr Harzter says expectations that the Reserve Bank will cut rates close to zero was dampening rather than stimulating the economy. 

ABC's Peter Ryan says the Reserve Bank's latest quarterly update considered the negative perception of falling rates but cut anyway in October to dampen a rising Australian dollar.