The Reserve Bank is "closely monitoring" the impact of recent interest rate reductions, which have encouraged accelerated loan repayment rather than new borrowing.Reserve Bank deputy governor Philip Lowe said that Australian interest rates were low compared with historical averages, although they were relatively high compared with other countries.Speaking at the Commonwealth Bank Australasian Fixed Income Conference in Sydney yesterday, Lowe said: "These lower than average interest rates are providing some support to demand in the economy."There is also some sign that they have led to a slight improvement in the property market, although there has been little change in the appetite for debt."It would appear that, for the moment at least, the lower interest rates, rather than encouraging household borrowing, have allowed many households with mortgages to repay their loans slightly more quickly than was previously the case."Lowe cautioned those arguing for lower rates to be careful what they wished for. "Australia's interest rates remain above those in other developed economies. The main reason for this is that the rate of return on new investment in Australia is higher than in many other countries, as evidenced by the high level of investment."The very low interest rates in many other countries should not be seen as a good thing or something to aspire to.