RBA Ellis: Australia’s neutral rate a guide for policy, not a destination
…
This is a premium post.
[s2If !current_user_can(access_s2member_level4)]Please register for PREMIUM VERSION HERE to read full post below containing analysis. In case of any error or you think you are not able to read the full post below, please email us at support#nehcap.com [lwa][/s2If] [s2If current_user_can(access_s2member_level4)]
Reserve Bank of Australia (RBA) Assistant Governor Luci Ellis has emphasised that the neutral rate was a moving target and hard to determine at any stage in time, which limited its usefulness for monetary policy.
He explained that Australia’s neutral interest rate is at least 2.5% but is not the sole determinant of policy which should be driven by changing circumstances in the economy.
More to come…
[/s2If]
Join Our Telegram Group
