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Neutral rate estimates from SARB - Codera Analytics

Neutral rate estimates from SARB

The neutral real interest rate is a useful concept for assessing the stance of  monetary policy. SARB has raised its projections of neutral over time, and most recently had a terminal rate of around 2.5% real (around 7% nominal). This suggests more than 200 basis points of further tightening is required to shift to a neutral policy stance over the projection period.