The neutral rate—the interest rate at which monetary policy is neither accommodative nor restrictive—is a theoretical concept that cannot be directly observed, only estimated. The neutral rate is an ...
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The RBA trims the neutral policy rate and lowers potential output, productivity growth, & the NAIRU
The RBA’s forecasts suggest that the RBA is assuming a short-term neutral policy rate of just over 3% and a lower NAIRU of 4¼%. The RBA has marked down potential growth from 2¼% to 2% as it revised ...
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