No one using low rates to invest: RBA

Reserve Bank governor Philip Lowe says low global interest rates aren't working because entities and governments won't take advantage of them to invest.

New Reserve Bank governor Philip Lowe believes it is unlikely Australia will run out of "monetary room" and force it to undertake "incredibly unusual things" like other countries where they have zero interest rates.

However, he says "some entity" or government should use low interest rates to invest, using their balance sheets to facilitate infrastructure spending.

"The reason why ... monetary policy is not working globally, no one wants to use low interest rates to increase their spending," Dr Lowe told a parliamentary committee hearing in Sydney on Thursday.