The current level of interest rates remains below New Zealand’s neutral rate, as was the case when we raised rates during the period March to July 2014.
We view the neutral interest rate as the policy rate consistent with the economy growing at its potential in the  6  BIS central bankers’ speeches  medium term and having inflation expectations matching the price stability objective. The Bank’s analysis suggests that the neutral 90-day rate currently sits in the 4 to 5 percent range.