Because global saving and investment influence the domestic neutral rate, increased inequality globally can reduce the neutral rate in Australia even though income inequality has not increased by as much here. ﻿[ 10] These explanations for lower neutral rates are largely based on structural factors.
BIS central bankers’ speeches  1  Banks have already responded to the announcement of the ECB comprehensive assessment and strengthened their balance sheets by over € billion prior to the completion of the exercise. This includes € billion of capital raised by two Cypriot banks.