Debelle said the Reserve Bank of Australia (RBA) has looked at the experiences of Canada, the United States and the United Kingdom where rates have in the past been cut to 0-0.5%. Those experiences provided some guidance on what an Australian move to such setting might look like.
The remarks suggest the RBA, which has eased policy twice since June to a record low of 1%, was ruling out the prospect of negative rates in the country, ANZ economist David Plank said.
"The fact that the Deputy Governor did not mention examples of negative rates suggests the global experiences that the RBA is drawing most of its lessons from are the U.S., UK and Canada," Plank said.
The RBA has remained tight-lipped about the timing of its next move, saying only that it would consider further easing if needed.
Financial markets are pricing in another RBA cut later this year and a follow-on move to 0.5% in February.
Debelle said the RBA has "thought about" other policy options such as bond buying if interest rates headed closer to zero.
"If we are not achieving our objectives then we have a mandate to try and achieve our objectives," he said.
In minutes from the August meeting, the RBA said unconventional policy worked best when it took the form of a package of measures, rather than in isolation, and was accompanied by clear and consistent policy messaging. That suggests Australia might adopt a similar approach if such stimulus was needed.
Australia's A$1.9 trillion economy came out of the global financial crisis relatively unscathed and has not had a recession since the early 1990s but it seems to be running out of steam now.
Earlier this month, the RBA downgraded forecasts for economic growth, inflation and employment even as it assumed the cash rate at 0.5%.
WEAKER AUSSIE
Debelle noted a depreciating Australian dollar was supporting the economy, saying further falls would be beneficial.
The Aussie has fallen more than 4% so far this year to as low as $0.6677, a level not seen since early 2009.
"The depreciation of the currency has been helpful for our macroeconomic outlook and if it depreciated further that would also be helpful for the macroeconomic outlook in terms of economic growth and also inflation," he said.
"That would help us move closer to our objectives on the real economy side as well as inflation."
Also supporting the outlook were early signs of stabilisation in the country's subdued property market.
Data out on Monday showed the cities of Sydney and Melbourne were set for their third months of gains in August as sales at auctions picked up, following rate cuts in June and July.
"There are more signs the market has certainly bottomed, but at the same time it doesn't seem to me it's off to the races," he said.