Australia’s neutral rate a guide for policy, not a destination -RBA


Article content

SYDNEY — 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, a top central banker said on Wednesday.

Reserve Bank of Australia (RBA) Assistant Governor Luci Ellis emphasized the neutral rate was a moving target and hard to determine at any stage of time, which limited its usefulness for monetary policy. (Reporting by Wayne Cole Editing by Chris Reese)


Source link

Comments are closed.