Determining the neutral cash rate is a challenge. This is because it is not directly observable and it is difficult to estimate precisely what the current level should be.
This Insight takes a look at why for a small open economy such as New Zealand the neutral rate may be better interpreted as a spread to the global cash rate, rather than some absolute level or number.
+64 3 943 4108
196 St Asaph Street
PO Box 5507 Papanui
For Commercial, Rural and Domestic Insurance: