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Q: What is neutral rate

BOE

Broadbent says very difficult to say where neutral rate is in real time and that we have not given a precise view. What we can say is we think we are seeing evidence the rate of interest is above the neutral rate as we are beginning to see an effective on demand growth, unemployment has gone up slightly. So the interest rate is probably above r* but beyond that we are not going to give an estimate, as it would be misleading.

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