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AAP

Politics

Poppy Johnston

Neutral cash rate 'guide' for reserve bank

Jim Chalmers Economy Australia Recession United States

Luci Ellis says the RBA isn't taking a prescriptive return path to more normal interest rate levels. (Lukas Coch/AAP PHOTOS) (AAP)

The central bank says it will be guided rather than bound to its estimates of a long-term "neutral" cash rate of 3.5 per cent.

Assistant governor Luci Ellis has provided guidance on how the Reserve Bank of Australia views the challenge of identifying the neutral cash rate.

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