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Bullock Weighs In On “Neutral”

RBA

Bullock stresses need to get interest rate up to somewhere around neutral, which is deemed “a fair bit higher than where we are.” Need to be alert to many different complexities surrounding household and business balance sheets, not focused on getting cash rate to a level whereby they would be comfortable with the room to cut when questioned on the matter. Points to ’17 work on neutral rates, which flagged a neutral real rate of 0.5-1.5%, noting difficulties on the assessment of the neutral rate.

MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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