RBA's Kent Says Neutral Rates Likely Rising in Australia and Abroad

Reserve Bank of Australia Assistant Governor Kent said there is reasonable evidence that neutral interest rates are rising both in Australia and abroad. He added that it is hard to know where the neutral rate sits given too much uncertainty.

The comments highlight how difficult it is for policymakers to judge the appropriate stance of monetary policy when estimates of the neutral rate are shifting and imprecise. No specific level for the neutral rate was provided.