Neutral interest rate

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

A neutral policy interest rate is one which neither causes 'overheating' in the economy (from too low a rate), nor recession (from too high a rate).

Also known as the 'natural' interest rate.

See also

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