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

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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)