RBA Ellis says the implied neutral rate in Australia is at least 2.5%

Reserve Bank of Australia's Luci Ellis, Assistant Governor (Economic):

• Neutral rate is a guide rail for policy not a destination
• Real neutral rate is uncertain but should be positive, even if low
• In Australia, that implies nominal neutral rate is at least 2.5%
• Neutral rate is a long run concept, should use inflation Inflation Inflation is defined as a quantitative measure of the rate in which the average price level of goods and services in an economy or country increases over a period of time. It is the rise in the general level of prices where a given currency effectively buys less than it did in prior periods.In terms of assessing the strength or currencies, and by extension foreign exchange, inflation or measures of it are extremely influential. Inflation stems from the overall creation of money. This money is m Inflation is defined as a quantitative measure of the rate in which the average price level of goods and services in an economy or country increases over a period of time. It is the rise in the general level of prices where a given currency effectively buys less than it did in prior periods.In terms of assessing the strength or currencies, and by extension foreign exchange, inflation or measures of it are extremely influential. Inflation stems from the overall creation of money. This money is m Read this Term expectations
• Inflation expectations over one year remain well anchored inside 2-3% target range

more to come

Full text:

The Neutral Rate: The Pole-star Casts Faint Light