RBA Ellis: Australia's neutral rate a guide for policy, not a destination

Reserve Bank of Australia (RBA) Assistant Governor Luci Ellis has emphasised that the neutral rate was a moving target and hard to determine at any stage in time, which limited its usefulness for monetary policy.

He explained that 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.

More to come...