Neutral rate

Central banks - monetary policy - interest rates - policy rates.

Abbreviation for 'neutral interest rate'.

The economic impacts of Covid-19 to date

"With a lower neutral rate, the likelihood that the economy gets stuck in a low inflation rut is higher and hence the case to respond strongly to downside risks is correspondingly greater."

Michael Saunders, External Member of the Bank of England's Monetary Policy Committee (MPC), May 2020.

See also

• Central bank
• Downside risk
• Interest rate
• Lowflation
• Monetary policy
• Neutral interest rate
• Overheating
• Policy interest rate
• Recession